Instructions Byrd Company had the following transactions during 2019 and 2020: 1. On December 24, 2019, a computer was purchased on account from Computers International for $60,000. Terms of the sale were 2/10, 1/30. 2. Byrd calculated that to forgo the discount for the computer would be the equivalent of paying 36% interest annually for the extra 20 days Therefore, Byrd went to First Local Bank and signed a $60,000, 30-day note at 12% in order to take advantage of the discount terms. This transaction took place on December 29, 2019. (The account payable was paid on January 2, 2020, and the note was paid at maturity. Assume a 360-day year.) 3. On December 30, 2019. Byrd declared a $2.00 cash dividend to the common shareholders. Ten thousand shares were outstanding on this date. The dividend is to be paid on January 5, 2020 Required: 1. Prepare the journal entries for Byrd for both 2019 and 2020. Assume that the nest price method is used to account for the credit terms. 2. Show how the preceding items would be reported in the current Mabilities section of Byrd's December 31 2019, balance sheet 3. Next Level Assuming Byrd's current assets were $1,200,000 and its current ratio was 24 at the end of 2018, compute the current ratio at the end of 2019 (besed solely on the effects of the preceding transactions) Instructions On November 1, 2019 Edwin Inc. borrowed cash and signed a $60,000, 1-year note payable. Required: 1. Compute the following items assuming (a) an interest-bearing note at 12%, (b) a non-interest-bearing note discounted at 12% a. cash received b. effective interest rate C. Interest expense for 2019 2. Prepare the journal entries for Edwin under each case for 2019 and 2020. 3. Next Level Why is the effective rate higher for the non-interest-beaning