Blanton Plastics, a household plastic product manufacturer, borrowed $21 million cash on October 1,2021 , to provide working capital for year-end production. Blanton issued a four-month, 9% 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 9% 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? 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.) Journal entry worksheet Record the issuance of the note by Blanton Plastics. Nate: Enter debits before credits. Prepare the journal entries to record (a) the issuance of the note by Blanton Plastics and (b) L8T Bank's recelvable 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.) Journal entry worksheet Note: Enter debits before eredits. 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.) Journal entry worksheet Record the adjusting entry for the Blanton Plastics. Note: Enter debits before credits. 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.) Journal entry worksheet Record the adjusting entry for the L\&T Bank. Note: Enter debits before credits. 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.) Journal entry worksheet Record the maturity of the note for Blanton Plastics. Note: Enter debits before credits. 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.) Journal entry worksheet Record the maturity of the note for L\&T Bank. Note: Enter debits before credits. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% is the bank's stated discount rate. (a) Prepare the journal entries to record the issuance of the noninterest-bearing note by Blanton Piastics 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.) Show iess a Journal entry worksheet 4 Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% 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.) Show less a Journal entry worksheet Note: Enter debits before credits Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% 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.) Show less a Journal entry worksheet Note: Enter debits before credits. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% 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.) Journal entry worksheet Show lessa Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% is the bank's stated discount rate. (b) What would be the effective interest rate? (Do not round intermediate calculations and round your final answer to 1 decimal place.)
