The following transactions of Smith Pharmacies occurred during 2016 and 2017: Mar. 1 Borrowed $240,000 from Naples

Question:

The following transactions of Smith Pharmacies occurred during 2016 and 2017:
Mar. 1 Borrowed $240,000 from Naples Bank. The eight-year, 7% 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 $150,000 cash with 5awyer Bank. The mortgage requires monthly payments of $6,000. The interest rate on the note is 11 % and accrues monthly. The first payment is due on January 1, 2017.
2017
Jan. 1 Paid Sawyer Bank monthly mortgage payment.
Feb. 1 Paid 5awyer Bank monthly mortgage payment.
Mar. 1 Paid 5awyer Bank monthly mortgage payment.
1 Paid first installment on note due to Naples Bank.
Requirements
1. Journalize the transactions in the Smith Pharmacies general journal. Round all answers to the nearest dollar. Explanations are not required.
2. Prepare the liabilities section of the for Smith Pharmacies on March 1, 2017 after all the journal entries are recorded. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...