DO Assignments Blanton Plastics, a household plastic product manufacturer, borrowed $12 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. ( What would be the effective interest rate? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 3B 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 View transaction list Journal entry worksheet w 8 of 9 WEE Required: 2021. 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 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 state discount rate. (a) Prepare the journal entries to record the issuance of the noninterest-bearing note by Blanton Plastics on Octo 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. Reg 1 Reg 2 Req 3A Reg 38 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.) Annual effective rate 3.1 %
