Required

Prepare the liabilities section of the balance sheet for Green Pharmacies on March 1, 2017, after all journal entries have been posted. First, prepare a depreciation plan for the Saban Bank mortgage until March 1, 2018.

Prepare the plan for the first three payments, then the remaining months one at a time.

 Information

March 1, 2016: Borrowed $400,000 from Coconut Creek bank. The eight-year 5% promissory note requires payments to be made annually on March 1. Each payment consists of $50,000 Principal plus one year's interest. 

December 1, 2016: Mortgage the warehouse with Saban Bank for $150,000 in cash. The mortgage requires a monthly payment of $6,000. The interest rate of the promissory note is 6% and accrues monthly. The first payment will be made on 1 January 2017. 

31 December 2016: Registered interest accrued on Saban Banknote. 

December 31, 2016: Registered interest accrued on the Coconut Creek Note. 

January 1, 2017: A monthly housing loan payment was made to Saban Bank. 

February 1, 2017: Monthly housing loan payment was made to Saban Bank. 

March 1, 2017: Monthly housing loan payment was made to Saban Bank. 

March 1, 2017: Due to Coconut Creek Bank, the first installment was paid by promissory note. 

Answer rating: 100% (QA)

Liabilities section of the balance sheet for Green Pharmacies on March 1 2017 Liabilities Notes Paya... View the full answer