an effective interest rate of $11\%.$

Interest$-$Bearing Note

Noninterest$-$Bearing Note

a$.$ How much cash should Anne Taylor Company receive from the note on August $1$ of Year $1,$ assuming the note is an interest$-$bearing note?

b$.$ Provide the following entries and reporting amounts:

August $1$ of Year $1,$ date of the loan.

December $31$ of Year $1,$ adjusting entry.

July $31$ of Year $2,$ payment of the note.

Note: Round your answers to the nearest whole dollar.

c$.$ Record the entries in Year $2$ to $(1)$ record actual cash warranty costs and $(2)$ accrue for warranties at year$-$end.

d$.$ At December $31$ Year $2,$ what would Ward report as estimated warranty liability on its balance sheet?