accounting 3

On November 1, 2016. Quantum Technology. a geothermal energy supplier. borrowed $14 million cash to fund a geological survey. The loan was made by Nevada BancCorp under a noncommitted short-term line of credit arrangement. Quantum issued a nine-month, 15% promissory note. Interest was payable at maturity. Quantum's scal period is the calendar year. Required: 1. Prepare the journal entry for the issuance of the note by Quantum Technology. [If no entry is required for a transaction/event, select "No journal entry required" in the first account eld. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Record the issuance of the note by Quantum Technology. Note: Enter debits before credits. 01,2016 Record entry Clear entry View general journal 2.8: Prepare the appropriate adjusting entry for the note by Quantum on 3. December 31, 2016 and journal entry for the payment of the note at maturity. (If no entry is required for a transactionlevent, select "No journal entry required'I in the rst account field. Enter your answers in whole dollars.) View transaction list 1 Record the adjusting entry for the note by Quantum on December 31, 2016. 2 Record the the payment of the note at I maturity. The following selected transactions relate to liabilities of United Insulation Corporation. United's scal year ends on December 31. 2016 Jan.13 Negotiated a revolving credit agreement with Parish Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $22.0 million at the bank's prime rate. Feb.1 Arranged a three-month bank loan of $3.0 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 10% was payable at maturity. May 1 Paid the 10% note at maturity. Dec.1 Supported by the credit line. issued $15.0 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 9% discount rate. 31 Recorded any necessary adjusting entry(s}. 2017 Sept.1 Paid the commercial paper at maturity. Required: Prepare the appropriate journal entries through the maturity of each liability 2016 and 2017. {If no entry is required for a transactionfevent, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars} - View transaction list Journal entry worksheet Negotiated a revolving credit agreement with Parish Bank that can be renewed annually upon bank a roval. The amount available under the line of credit is 2.0 million at the bank's urime rate. Note: Enter debits before credits. Cupola Awning Corporation introduced a new line of commercial awnings in 2016 that carry a two-year warranty against manufacturer's defects. Based on their experience with previous product introductions, warranty costs are expected to approximate 2% of sales. Sales and actual warranty expenditures for the rst year of selling the product were: Actual Warranty Sales Expenditures $5,190,000 $35,500 Required: 1. Does this situation represent a loss contingency? 0 No 0 Yes 2.Prepare journal entries that summarize sales of the awnings (assume all credit sales} and any aspects ofthe warranty that should be recorded during 2016. {If no entry is required for a transactionr'event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the 2016 sales. Note: Enter debits before credits. 3.What amount should Cupola report as a liability at December 31, 2016? -:|