2016 Mar. 1 Borrowed $ 240,000 from Naples Bank. The twelve-year, 9% note requires payments due annually, on March 1. Each payment consists of $ 20,000 principal plus one year's interest.
Dec. 1 Mortgaged the warehouse for $ 400 comma 000 cash with Sage Bank. The mortgage requires monthly payments of $ 5,000. The interest rate on the note is 11% and accrues monthly. The first payment is due on January 1, 2017.
31 Recorded interest accrued on the Sage Bank note.
31 Recorded interest accrued on the Naples Bank note. 2017

Jan. 1 Paid Sage Bank monthly mortgage payment.
Feb. 1 Paid Sage Bank monthly mortgage payment.
Mar. 1 Paid Sage Bank monthly mortgage payment.
1 Paid first installment on note due to Naples Bank.

Required:
Journalize be transactions in me Green Pharmacies general journal.

Green Pharmacies

General journal

Mar. 1:

Debit Cash Account $240,000

Credit Bank 9% Notes Payable (Naples Bank) $240,000

To record the issue of notes payable.

Dec. 1

Debit Warehouse Mortgage $400,000

Credit Warehouse $400,000

To record the transfer of the house to a mortgage bank.

Debit Cash Account $400,000

Credit Mortgage Payable (Sage Bank) $400,000

To record the receipt of cash from the mortgage.

Dec. 31:

Debit Interest on Mortgage Note Expense $3,667

Credit Interest on Mortgage Note Payable $3,667

To record the interest due for the month.

Dec. 31:

Debit Interest on Bank Note Expense $18,000

Credit Interest on Bank Notes Payable $18,000

To accrue interest for 10 months.

Jan. 1:

Debit Mortgage Payable (Sage Bank) $5,000

Debit Interest on Mortgage Note Payable $3,667

Credit Cash Account $8,667

To record monthly repayment plus interest.

Jan. 31:

Debit Interest on Mortgage Note Expense $3,667

Credit Interest on Mortgage Note Payable $3,667

To record the interest due for the month.

Feb. 1:

Debit Mortgage Payable (Sage Bank) $5,000

Debit Interest on Mortgage Note Payable $3,667

Credit Cash Account $8,667

To record monthly repayment plus interest.

Feb 28:

Debit Interest on Bank Note Expense $3,600

Credit Interest on Bank Notes Payable $3,600

To accrue interest for 2 months.

Mar. 1

Debit Mortgage Payable (Sage Bank) $5,000

Debit Interest on Mortgage Note Payable $3,667

Credit Cash Account $8,667

To record monthly repayment plus interest.

Mar. 1:

Debit Notes Payable (Naples Bank) $20,000

Debit Interest on Bank Notes Payable $21,600

Credit Cash Account $41,600

To record the first repayment of principal and interest.

Explanation:

Journals are initial records made in an accounting book.  It shows the debit and credit aspects of each business transaction.