Assignment 1) Using the General Journal tab, click Add Transaction to journalize
ID: 2532766 • Letter: A
Question
Assignment 1) Using the General Journal tab, click Add Transaction to journalize each transaction. Click Post Transaction once you complete the entry, then repeat these steps for each transaction 2) Click the Reports tab and review the results of recording these transactions on the General Ledger. 3) Click Submit Work when complete Background Johnson Pharmacies entered into the transactions listed in the Transaction section below Transactions: 03/02/2018 Borrowed $450,000 cash from Coconut Creek Bank. The 15-year, 5% note requires payments due annually on March 1. Each 12/01/2018 Mortgaged the warehouse for $250,000 cash with Saputo Bank. The mortgage requires monthly payment of $8,000. The interest rate 12/31/2018 Recorded interest accrued on the Saputo Bank mortgage (round calculations to the nearest dollar) payment consists of $30,000 of principal plus one year's interest. on the note is 12% and accrues monthly. The first payment is due on January 1, 2019 AVE WORK RESET RESULTS SUBMIT WoRK BuSINEss REPORTS March 2, 2018 -March 1, 2019 COMPANY INFORMATION CHART OF ACCOUNTS GENERAL JOURNAL Date Account Debit Credit 03/02/2018 Select an accountExplanation / Answer
Date Account titles and explanation Debit Credit 02-03-2018 Cash 450000 Notes payable 450000 (Note received from Cocunut Creek Bank) 01-12-2018 Cash 250000 Mortgage loan payable 250000 (Mortgage loan received) 12-31-2018 Interest expense (250000*12%*1/12) 2500 Interest payable 2500 (Interest accrued on Saputo mortgage bank) 12-31-2018 Interest expense (450000*5%*10/12) 18750 Interest payable 18750 (Interest accrued on Creek bank Note) 01-01-2019 Mortgage loan payable 8000 Interest payable 2500 Cash 10500 (Monthly mortgage payment) 02-01-2019 Mortgage loan payable 8000 Interest expense (250000-8000)*12%*1/12 2420 Cash 10420 (Monthly mortgage payment) 03-01-2019 Mortgage loan payable 8000 Interest expense (250000-16000)*12%*1/12 2340 Cash 10340 (Monthly mortgage payment) 03-01-2019 Notes payable 30000 Interest payable 18750 Interest expense (450000*5%*2/12) 3750 Cash 52500 (Paid first instalment of note)