Long-Term Liabilities Problems Group A P14-32A Journalizing liability transactions and reporting them on the balance Learning sheet The following transactions of Johnson Pharmacies occurred during 2018 and 201% 2. Total Liabities $653.334 2018 Borrowed $450,000 from Coconut Creek Bank. The 15-year, 5% note requires payments due annually, on March 1. Each payment consists of $30,000 principal plus one year's interest. Mortgaged the warehouse for $250,000 cash with Saputo Bank. The mortgage requires monthly payments of $8,000. The interest rate on the note is 12% and accrues monthly. The first payment is due on January 1, 2019. Recorded interest accrued on the Saputo Bank note. Recorded interest accrued on the Coconut Creek Bank note. Mar. 1 Dec. 1 31 31 2019 Jan. 1 Paid Saputo Bank monthly mortgage payment. Feb. 1 Paid Saputo Bank monthly mortgage payment. Mar. 1 Paid Saputo Bank monthly mortgage payment. 1 Paid first installment on note due to Coconut Creek Bank Requirements 1. Journalize the transactions in the Johnson Pharmacies general journal. Round to the nearest dollar.

Saputo Bank Interest Calculations
		Beginning	Principal	Interest	Total	Ending
		Balance	Payment	Expense	Payment	Balance
	Interest Expense	=	Carrying Amount		Market interest rate		Time