Instructions Chart of Accounts X On October 1, 2016, Ratkowski Inc. borrowed $18,000 from Second National Bank by issuing a 12-month note. The bank discounted the note at 9%. CHART OF ACCOUNTS Ratkowski Inc. General Ledger Required: 1. Prepare the journal entry needed to record the issuance of the note. 2. Prepare the journal entry needed at December 31, 2016, to accrue interesi. 3. Prepare the journal entry to record the payment of the note on October 1, 2017. 4. What effective rate of interest did Ratkowski pay? General Journal 1. Prepare the journal entry with the impact on the financial statements needed to record the issuance of the note. REVENUE 411 Sales Revenue X ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 154 Supplies 174 Equipment 179 Accumulated Depreciation General Journal Instructions PAGE 1 IMPACT ON FINANCIAL STATEMENTS BALANCE SHEET INCOME STATEMENT EXPENSES 500 Cost of Goods Sold 521 Salaries and Wages Expense 532 Utilities Expense 533 Insurance Expense 534 Rent Expense 537 Supplies Expense 541 Depreciation Expense 551 Advertising Expense 559 Miscellaneous Expenses 810 Interest Expense 910 Income Tax Expense GENERAL JOURNAL LIABILITIES 211 Accounts Payable 231 Salaries and Wages Payable 235 Notes Payable 236 Discount on Notes Payable 261 Income Taxes Payable DATE POST. REF ACCOUNT TITLE DEBIT CREDIT ASSETS LIABILITIESQUITY REVENUEEXPENSESNCOME 1 2 3 EQUITY 311 Capital Stock 331 Retained Earnings Final Question 2. Prepare the journal entry with the impact on the financial statements needed at December 31, 2016, to accrue interest. Assume a 360 day year for interest calculations. X 4. What effective rate of interest did Ratkowski pay? PAGE 1 IMPACT ON FINANCIAL STATEMENTS BALANCE SHEET INCOME STATEMENT GENERAL JOURNAL DATE POST REF ACCOUNT TITLE Additional Instructions DEBIT CREDIT ASSETS LIABILITIEQUITY REVENUEXPENSESNETE 1 Effective interest rate % 2 3. Prepare a single joumal entry with the impact on the financial statements to record the payment of the note on October 1, 2017 including interest expense for the year. Assume a 360 day year for interest calculations. PAGE 1 IMPACT ON FINANCIAL STATEMENTS BALANCE SHEET INCOME STATEMENT GENERAL JOURNAL DATE ACCOUNT TITLE POST. DEBIT CREDIT ASSETS LIABILITIESQUITY REVENUEEXPENSESNCOME 1 2