Ontario Resources, a natural energy supplier, borrowed $79.6 million cash on November 1, 2016, to fund a geological survey. The loan was made by Quebec Banque under a short-term financing arrangement. Ontario Resources issued a 6-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. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select “No journal entry required” in the first account field.
2. & 3. Prepare the appropriate adjusting entry for the note by Ontario Resources on December 31, 2016 and journal entry for the payment of the note at maturity.