On November 16, 2016, Clear Glass Company borrowed $24,000 from First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 12% 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, 2016, balance sheet.
3.	Next Level What is Clear Glass Companys effective interest rate?

General Journal

Prepare the necessary journal entries to record:

	1. the issuance of the note on November 16, 2016
	2. the related adjustment on December 31, 2016
	3. payment of the note on February 15, 2017
	4. interest expense for 2017 on February 15, 2017

Additional Instructions