Instructions On November 16, Year 1, Clear Glass Company borrowed $14,000 from First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 10% and remitted the difference to Clear Glass. Required: 1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar year-end adjusting entry, and payment of the note at maturity. 2. Show how the preceding items would be reported on the December 31, Year 1, balance sheet. 3. Next Level What is Clear Glass Company's effective interest rate? General Journal 1. Prepare the necessary journal entries to record: 1. the issuance of the note on November 16, Year 1 2. the related adjustment on December 31, Year 1 3. payment of the note on February 15, Year 2 4. interest expense for Year 2 on February 15, Year 2 November-December, Year 1 entries should be recorded in page 1, February, Year 2 entries should be recorded in page 2. Next Level General Journal Instructions GENERAL JOURNAL DATE ACCOUNT TITLE 1 2 3 4 5 GENERAL JOURNAL DATE ACCOUNT TITLE 1 2 3 4 PAGE 1 POST. REF. DEBIT CREDIT PAGE 2 POST. REF. DEBIT CREDIT Balance Sheet 3. What is Clear Glass Company's effective interest rate? 2. Show how the preceding items would be reported on the December 31, Year 1, balance sheet. Additional Instructions % rate for 90 days Balance Sheet Instructions 1 Current Liabilities: 2 3 CLEAR GLASS COMPANY Partial Balance Sheet December 31, Year 1