Question

Requirement 1. Journalize the transactions in the

Wholesale Pharmacies general journal. Round all answers to the nearest dollar. Explanations are not required. ​(Record debits​ first, then credits. Exclude explanations from any journal​ entries.)

Mar 1,2018​: Borrowed $350,000 from Margate Bank. The seven​-year, 99​% note requires payments due​ annually, on

March1. Each payment consists of $50,000 principal plus one​ year's interest.

Date			Accounts	Debit	Credit
2018
Mar. 1

Dec.Dec. 1, 2018​: Mortgaged the warehouse for $150,000 cash with Sandi Bank. The mortgage requires monthly payments of $10,000.The interest rate on the note is 44​% and accrues monthly. The first payment is due on January​ 1, 2019.

Date			Accounts	Debit	Credit
2018
Dec. 1

Dec. 31,2018​: Recorded interest accrued on the Sandi Bank note.

Date			Accounts	Debit	Credit
2018
Dec. 31

Dec.​31,2018​: Recorded interest accrued on the Margate Bank note.

Date			Accounts	Debit	Credit
2018
Dec. 31

Jan.​1, 2019​: Paid Sandi Bank monthly mortgage payment.

Date			Accounts	Debit	Credit
2019
Jan. 1

Feb.​1,2019​: Paid Sandi Bank monthly mortgage payment.

Date			Accounts	Debit	Credit
2019
Feb. 1

Mar.​1,2019​: Paid Sandi Bank monthly mortgage payment.

Date			Accounts	Debit	Credit
2019
Mar. 1

Mar ​1, 2019​: Paid first installment on note due to Margate Bank.

Date			Accounts	Debit	Credit
2019
Mar. 1

Answer 1

journal

date

particulars

debit ($)

credit ($)

2018  

march 1 cash account debit 350000   

margate bank 350000

dec 1 cash account debit 150000

sundi bank     150000

dec 31 interest expense(margate )       debit 41250

to accrual interest 41250

dec 31 interest expense (sundi) debit 5500

to accrued interest   5500

dec 31 profit and loss account debit 46750

to interest expense ( 41250+5500)        46750

2019

jan 1 sundi bank account debit 10000

accrued interest    debit 5500

to cash 15500

feb 1   sundi bank account debit 10000

interest expense    debit 5500

to cash 15500

march 1    sundi bank account debit 10000

interest expense    debit 5500

to cash 15500

march 1 margate bank account debit 50000

accrued interest debit    41250

interest expense debit 8250

to cash 99500