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Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. Hudson's Bay Company (HBC) is Canada's largest department store.

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Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. Hudson's Bay Company (HBC) is Canada's largest department store. Each Christmas, HBC builds up its inventory to meet the needs of Christmas shoppers. A large portion of Christmas sales are on credit. As a result, HBO often collects cash from the sales several months after Christmas. Assume that on November 1, 2020 HBC borrowed $6.6 million cash from Downtown Bank and signed a promissory note that matures in six months. The interest rate was 6.0 percent payable at maturity. The accounting period ends December 31, Required: 1. Prepare the journal entry to record the note on November 1, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet 1 Record the journal entry to record the note on November 1, 2020. Notet Enter debits before credits General Journal Debit Credit Date November 01 2020 2. Prepare any adjusting entry required on December 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet > Record the adjusting entry required on December 31, 2020. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2020 Record entry Clear entry View general Journal 3. Prepare the journal entry to record payment of the note and interest on the maturity date, April 30 2021, assuming that interest has not been recorded since December 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet

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