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, HBC often collects cash from the sales several months after Christmas. Assume that on November $1,2020,$ HBC borrowed $$6\mathrm{.}7$ million cash from Downtown Bank and signed a promissory note that matures in six months. The interest rate was $5\mathrm{.}7$ percent payable at maturity. The accounting period ends December $31.$

Required:

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.$)$

Journal entry worksheet

$1$

Record the journal entry to record the note on November $1,2020.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[\backslash$table$[[$November $01,],[2020]],,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

View general journ

$2.$ 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.$)$

Journal entry worksheet

$1$

Record the adjusting entry required on December $31,2020.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[\backslash$table$[[$December $31,],[2020]],,,],[,,,],[,,,],[,,,],[,5,,],[,,,]]$

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.$)$

Journal entry worksheet

$1$

Record the payment of the note and interest on the maturity date, April $30,2021,$ assuming that interest has not been recorded since December $31,2020.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$April $30,2021,$r$,,],[,?,,],[,?,,],[,$Y$,,],[,3,,],[,,,]]$