A number of independent situations are set out below. The underlined entity is the reporting entity. 

1. Montreal Pool and Skeet Corp.’s debt to equity ratio is 1.6:1, based on its draft financial statements for the year ended December 31, 2019. This leverage ratio exceeds the 1.5:1 maximum stipulated in Montreal’s loan agreement pertaining to a $1,000,000 loan maturing on March 15, 2022. The loan agreement stipulates that the loan becomes payable on demand upon breach of any of the loan covenants. Montreal’s creditors agreed on December 15, 2019, to waive their right to demand payment until December 31, 2020, for reason only that the firm’s leverage ratio exceeds the stipulated maximum.
2. Bathurst Piano Storage Inc. issued a $20,000, 30-day, non-interest bearing note to Len’s Crating for storage bins. The market rate of interest for similar transactions is 2%.
3. On November 30, 2021, Port Mellon Fertilizer Ltd. entered into a non-cancellable agreement to buy 10 tonnes of phosphorus for $1,000 per tonne for delivery on February 28, 2022. Phosphorus is a key component of the custom fertilizer that Port Mellon produces. The market price of phosphorus is extremely volatile, as evidenced by the $700 per tonne that it could be acquired for on December 31, 2021. Notwithstanding the premium price paid for the phosphorus, the company expects that fertilizer sales will remain profitable. Port Mellon’s year-end is December 31.
4. Gander Airport Parking Ltd. awards customers 250 award miles per stay in a well-known airline mileage program. Gander pays the airline $0.02 for each mile. Gander, which is not an agent for the airline, estimates that the fair value of the miles is the same as the price paid—$0.02. Parking revenues on May 24, 2020, were $25,000. Gander awarded 50,000 airline points to its customers.
5. On October 15, 2020, Charlottetown Windows and Sash properly recorded the issue of a $20,000, 6% note due April 15, 2021. Charlottetown is preparing its financial statements for the year ended December 31, 2020. Charlottetown does not make adjusting entries during the year.

Required:

For each of the situations described above, prepare the required journal entry. If a journal entry for the underlined entity is not required, explain why.