Many businesses borrow money during periods of increased business activity to finance inventory and trade receivables. Sears Canada Inc. is one of Canada's largest general merchandise retailers. Each year, Sears Canada builds up its inventory to meet the needs of December holiday shoppers. A large portion of these holiday sales are on credit. As a result, Sears Canada often collects cash from the sales several months after the December holidays. Assume that on November 1, 2017, Sears Canada borrowed $5.7 million cash from the bank for working capital purposes and signed an interest-bearing note due in six months. The interest rate was 7 percent per annum, payable at maturity. Assume that the fiscal year of Sears Canada ends on December 31. Required: 1. Prepare the journal entry to record the note on November 1, 2017. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in dollars not in millions.) record the note swers in devent, select View transaction list Journal entry worksheet Record entry for amount borrowed on 6-month note. Note: Enter debits before credits. General Journal Debit Credit Date November 01, 2017 Record entry Clear entry View general journal 2. Prepare any adjusting entry required at December 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars not in millions. Do not round intermediate calculations.) View transaction list Journal entry worksheet Record adjusting entry to accrue interest on note. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2017 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, 2018. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in dollars not in millions. Do not round intermediate calculations.) View transaction list Journal entry worksheet Record entry for amount paid on note on maturity. Note: Enter debits before credits. General Journal Debit Credit Date April 30, 2018 Record entry Clear entry View general journal Gonzales Co. provides warranties for many of its products. Its estimated warranty liability account had a balance of $163,600 at January 1, 2017. Based on an analysis of warranty claims during the past several years, the warranty expense for 2017 was established at 0.4 percent of sales. During 2017, the actual cost of servicing products under warranty was $68,200, and sales were $16,300,000. Required: 1. Compute the warranty expense that should appear on the company's statement of earnings for the year ended December 31, 2017 Warranty expense 2. What amount will be reported in the estimated warranty liability account on the statement of financial position as at December 31, 2017? Estimated warranty liability Gonzales Co. provides warranties for many of its products. Its estimated warranty liability account had a balance of $163,600 at January 1, 2017. Based on an analysis of warranty claims during the past several years, the warranty expense for 2017 was established at 0.4 percent of sales. During 2017, the actual cost of servicing products under warranty was $68,200, and sales were $16,300,000. Required: 1. Compute the warranty expense that should appear on the company's statement of earnings for the year ended December 31, 2017 Warranty expense 2. What amount will be reported in the estimated warranty liability account on the statement of financial position as at December 31, 2017? Estimated warranty liability