er 1. Spencer Department Store borrowed $19,250 from First Bank and Trust. Spencer signed a day note with a face amount of $20,000. The interest rate stated on the face of the note is 15 percent ear. hovide the jounal entry recorded by Spencer on December l. vide the adjusting entry recorded by Spencer on December 31 before financial statements are pre- d. Show how the note payable would be disclosed on the December 31 balance sheet. ute the actual annual interest rate on the note. (Hint: Note that Spencer had the use of $19,250 Comp aly over the period of the loan.) Why is the actual interest rate different from the rate stated on the face of the