Ontario resources, a natural energy supplier, borrowed $80 million cash on november 1, 2013, to fund a geological survey. the loan was made by quebec banque under a short-term credit line. ontario resources issued a 9-month, 12% promissory note with interest payable at maturity. ontario resources' fiscal period is the calendar year.
required: 1. prepare the journal entry for the issuance of the note by ontario resources.
2. prepare the appropriate adjusting entry for the note by ontario resources on december 31, 2013. show calculations.
3. prepare the journal entry for the payment of the note at maturity. show calculations.
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Ontario resources, a natural energy supplier, borrowed $80 million cash on november 1, 2013, to fund...
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