P14-32A Journalizing liability transactions and reporting them on the balance sheet The following transactions of Johnson Pharmacies occurred during 2018 and 2019: 2018 Mar. 1 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. Dec. 1 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. 31 Recorded interest accrued on the Saputo Bank note. 31 2019 Recorded interest accrued on the Coconut Creek Bank note. Jan. 1 Paid Saputo Bank monthly mortgage payment. Feb. 1 Mar. 1 Paid Saputo Bank monthly mortgage payment. Paid Saputo Bank monthly mortgage payment. 1 Paid first installment on note due to Coconut Creek Bank.