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Bianton Plastics, a household plastic product manufacturer, borrowed $27 million cash on October 1,2024, to provide workina capital for vear-end production. Bianton issued a four-month,

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Bianton Plastics, a household plastic product manufacturer, borrowed $27 million cash on October 1,2024, to provide workina capital for vear-end production. Bianton issued a four-month, 8\% promissory note to L.TT Bank under a prearrangyed short-term line of credit. Interest on the note was payabie at maturity. Each firm's fiscal period is the catendar yedr. Required: 1. Preosw the joumal entries to record (o) the issuance of the note by Bionton Plastics and (b) L\&T Bank's recelvable on October 1, 2024 . 2. Prepare the joumal entries by both firms to record all subsequent events related to the note through January 31 , 2025. 3. Suppose the face amount of the note was adjusted to inciude interest (a noninterest-bearing note) and 8% is the bank's stated discount rate. (a) Prepore the journal entries to record the issuance of the noninterest-bearing note by Blanton Plastics on October 1, 2024, the adjusting entry at December 31, and poyment of the note at maturity. (b) What would be the effective interest rate

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