on November 1st 2016, Quantum technology, a geothermal energy supplier, borrowed 16 million dollars cash to find a Geological Survey. the loan was made by Nevada Bancorp under a tree non-committed short-term line of credit arrangement. quantum issues a 9 month, 12% promissory note. interest was payable at maturity. Quantum fiscal period is the calendar year.

1. prepare the journal entry for the issuance of the note by Quantum technology.

2. prepare the appropriate adjusting entry food note by quantum on December 31st 2016.

3. prepare the journal entry for the payment of the note at maturity.