Ontario Resources, a natural energy supplier, borrowed $80 million cash on Nov 1, 2006 to fund geological survey. The loan was made by Quebec Banque under a short-term credit line. Ontario Resources issues a 9 month, 12% promissory note with interest payable at maturity. Ontario Resources' fiscal period is the calendar year.
1)prepare the journal entry for the issuance of the note by Ontario Resources
2) Prepare the appropiate adjusting entry for the note by Ontario Resources on Dec. 31, 2006. (show calculations)
3)Prepare the journal entry for the payment of the note at maturity. (show calculations)
Accounting help ASAP PLEASE!!!?
1)prepare the journal entry for the issuance of the note by Ontario Resources
Nov 1, 2006
Dr Cash $80,000,000
Cr Note payable $80,000,000
2) Prepare the appropiate adjusting entry for the note by Ontario Resources on Dec. 31, 2006. (show calculations)
Dr Interest expense $1,600,000
Cr Interest payable $1,600,000
(being interest on $80m at 12%p.a. for 2 months)
3)Prepare the journal entry for the payment of the note at maturity. (show calculations)
Dr Interest expense $5,600,000
Dr Interest payable $1,600,000
Dr Note payable $80,000,000
Cr Cash $87,200,000
(being repayment of note of $80m plus interest at 12%p.a. for 9 months)
Reply:tell us please, what you will learn if someone else does your homework
Reply:Quebec Banque? Really?
Reply:this is easy
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