19. Ontario Resources, a natural energy suppler, borrowed $79.8 million cash on
ID: 2588477 • Letter: 1
Question
19. Ontario Resources, a natural energy suppler, borrowed $79.8 million cash on November 1, 2016, to funda survey. The loan was made by Quebec Banque under a short-term financing arrangement O Resources issued a Am th 12% promissory note with interest payable at maturity. Ontario Resources' fiscal period is the calendar year 1. Prepare the jourmal entry for the issuance of the note by Ontario Resources. (Enter your answers In whole dollars. If no entry is required for a transactionlevent, select "No Journal entry required" In the first account field.) View transaction list Journal entry worksheet Record the issuance of the note by Ontario Resources. Note: Enter debits before credits General Journal Debit Credit November 01, 2016 Record entry Clear entry View general journal 2. & 3 Propare the appropriate adjusting entry for the note by Ontario Resources on December 31, 2016 and jounal entry for the payment of the note at maturity (Enter your answers in whole dollars. It MacBook Air esc F3 FSExplanation / Answer
(In Millions)
Date
Particulars
Dr. Amount
Cr. Amount
Nov. 1, 2016
Bank
79.8
12% Promissory Note
79.8
(Being 9 Month 12% Note issued)
Dec. 31, 2016
Interest Expense
1.596
Outstanding Interest
1.596
(Being Interest for 2 months due)
Aug. 1, 2017
12% Promissory Note
79.8
Outstanding Interest
1.596
Interest Expense(7 months)
5.586
Bank
86.982
( Being note paid on maturity along with interest due)
Interest on December 31, 2016 = 79.8 * 12% * 2/12 months
Interest on December 31, 2016 =1.596
Interest on August 1, 2017 = 79.8 * 12% * 7/12 months
Interest on August 1, 2017 = 5.586
Date
Particulars
Dr. Amount
Cr. Amount
Nov. 1, 2016
Bank
79.8
12% Promissory Note
79.8
(Being 9 Month 12% Note issued)
Dec. 31, 2016
Interest Expense
1.596
Outstanding Interest
1.596
(Being Interest for 2 months due)
Aug. 1, 2017
12% Promissory Note
79.8
Outstanding Interest
1.596
Interest Expense(7 months)
5.586
Bank
86.982
( Being note paid on maturity along with interest due)
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