In: Accounting
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
Requirement 2. Prepare the liabilities section of the balance sheet for Wholesale Pharmacies on
March 1,2019 after all the journal entries are recorded. First, prepare an amortization schedule for the
Sandi Bank mortgage to March 1, 2020.
Prepare the schedule for the first three payments, then the remaining months one at a time. (Round your answers to the nearest whole dollar.)
Review the related journal entries you prepared in Requirement 1
.
Beginning |
Principal |
Interest |
Total |
Ending |
|
Balance |
Payment |
Expense |
Payment |
Balance |
|
12/01/2018 |
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1/01/2019 |
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2/01/2019 |
|||||
3/01/2019 |
4/01/2019 |
5/01/2019 |
6/01/2019 |
7/01/2019 |
8/01/2019 |
9/01/2019 |
10/01/2019 |
11/01/2019 |
12/01/2019 |
1/01/2020 |
2/01/2020 |
3/01/2020 |
Now prepare the liabilities section of the balance sheet for
Wholesale Pharmacies on March 1, 2019.
(If a box is not used in the table leave the box empty; do not select a label or enter a zero.)
Review the amortization schedule you prepared above.
Wholesale Pharmacies |
|||||
Balance Sheet (Partial) |
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March 1, 2019 |
|||||
Liabilities |
|||||
Beginning Balance($) |
Principal Payment($) |
Interest Expense($) |
Total Payment($) |
Ending Balance ($) |
|
12/01/2018 |
150000 | 150000 | |||
1/01/2019 |
150000 | 10000 | 5500 | 15500 | 140000 |
2/01/2019 |
140000 | 10000 | 5133 | 15133 | 130000 |
3/01/2019 |
130000 | 10000 | 4767 | 14767 | 120000 |
4/01/2019 |
120000 | 10000 | 4400 | 14400 | 110000 |
5/01/2019 |
110000 | 10000 | 4033 | 14033 | 100000 |
6/01/2019 |
100000 | 10000 | 3667 | 13667 | 90000 |
7/01/2019 |
90000 | 10000 | 3300 | 13300 | 80000 |
8/01/2019 |
80000 | 10000 | 2933 | 12933 | 70000 |
9/01/2019 |
70000 | 10000 | 2567 | 12567 | 60000 |
10/01/2019 |
60000 | 10000 | 2200 | 12200 | 50000 |
11/01/2019 |
50000 | 10000 | 1833 | 11833 | 40000 |
12/01/2019 |
40000 | 10000 | 1467 | 11467 | 30000 |
1/01/2020 |
30000 | 10000 | 1100 | 11100 | 20000 |
2/01/2020 |
20000 | 10000 | 733 | 10733 | 10000 |
3/01/2020 |
10000 | 10000 | 367 | 10367 |
BALANCE SHEET AS AT MARCH 1, 2019
LIABILITIES
Particulars | amount ($) |
MARGARATE BANK | 300000 |
SANDI BANK | 120000 |
total = | 420000 |