On October 31, 2018, assume that Steelco Inc. had $20.9 billion in Cash, Short-Term Investments, and (Net) Accounts Receivable and $26.1 billion in current liabilities. Also it had $20.4 billion in Long term assets. On October 3, 2018, the company received $350 million when it issued long term promissory notes. The notes will mature in 2023 and pay interest at the annual rate of 7% each Dec 31. Steelco's fiscal year ends on October 31.

Required:

1. Journalize the issuance of the note on Oct. 1. Calculate and accrue theinterest on Oct 31. (8 points)

2. What is the debt-to-assets ratio for Steelco on October 31? Provide your calculation (6 points)