Blanton Plastics, a household plastic product manufacturer, borrowed $15 million cash on October 1, 2021, to provide working capital for year-end production. Blanton issued a four-month, 8% promissory note to L&T Bank under a prearranged short-term line of credit. Interest on the note was payable at maturity. Each firm's fiscal period is the calendar year. Required: 1. Prepare the journal entries to record (a) the issuance of the note by Blanton Plastics and (b) L&T Bank's receivable on October 1, 2021. 2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2022. 3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 8% is the bank's stated discount rate. (a) Prepare the journal entries to record the issuance of the noninterest-bearing note by Blanton Plastics on October 1, 2021, the adjusting entry at December 31, and payment of the note at maturity. (b) What would be the effective interest rate? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Prepare the journal entries to record (a) the issuance of the note by Blanton Plastics and (b) L&T Bank's receivable on October 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) No Date 1 October 01, 2021 Cash Notes payable 2 October 01, 2021 Accounts receivable Cash General Journal Debit Credit 15,000,000 15,000,000 15,000,000 15,000,000 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) No Date General Journal 1 December 31, 202 Interest expense Interest payable 2 December 31, 2021 Interest receivable Interest revenue 3 January 31, 2022 Notes payable Interest payable Interest expense Cash Debit Credit 300,000 300,000 300,000 300,000 15,000,000 300,000 100,000 15,400,000 4 January 31, 2022 Cash 15,400,000 Accounts receivable 15,000,000 Interest receivable 300,000 Interest revenue 100,000 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 8% is the bank's stated discount rate. (a) Prepare the journal entries to record the issuance of the noninterest-bearing note by Blanton Plastics on October 1, 2021, the adjusting entry at December 31, and payment of the note at maturity. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) No Date 1 October 01, 2021 Cash Discount on notes payable Notes payable 2 December 31, 202 Interest expense Interest payable 3 January 31, 2022 Interest payable Interest expense General Journal Show less Debit Credit 14,600,000 400,000 15,000,000 300,000 300,000 300,000 100,000 Discount on notes payable 400,000 4 January 31, 2022 Notes payable Cash 15,000,000 15,000,000