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%. Required: 1. Prepare the journal entry needed to record the issuance of the note. Indicate the effect on financial statement Items by selecting "- for decrease (or negative effect), "+" for Increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Balance Sheet Journal Income Statement Date 2016 Description Debit Credit Assets Liabilities Oct. 1 Stockholders' Equity Revenues Expenses Net Income 2. Prepare the journal entry needed at December 31, 2016, to accrue interest. Use months in calculation. Indicate the effect on financial statement items by selecting "-" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Journal Balance Sheet Date 2016 Description Debit Credit Assets = Liabilities Dec. 31 + Stockholders' Equity Revenues Income Statement Expenses Net Income 3. Prepare the journal entry to record the payment of the note on October 1, 2017. Indicate the effect on financial statement items by selecting"-" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Balance Sheet Income Statement Journal Date Description 2017 Debit Credit Assets Liabilities Oct. 1 Stockholders' Equity Revenues Expenses Net Income 4. What effective rate of interest did Ratkowski pay? Round effective interest rate calculations to four decimal places, but enter as a percentage with two decimals; for example, .17629 rounds to .1763 and would be entered as 17.63, indicating 17.63%. %