Problem 13-1 (Algo) Bank loan; accrued interest (L013-2] Blanton Plastics, a household plastic product manufacturer, borrowed $7 million cash on October 1, 2021, to provide working capital for year-end production Blanton issued a four month, 15% promissory note to L&T Bank under a prearranged short-term line of credit Interest on the note was payable at maturity. Each firm's fiscal period is the calendar year Required: 1. Prepare the journal entries to record (a) the issuance of the note by Blanton Plastics and (b) L&T Bank's receivable on October 1, 2021 2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2022 3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 15% is the bank's stated discount rate. (a) Prepare the Journal entries to record the issuance of the noninterest-bearing note by Blanton Plastics on October 1, 2021 the adjusting entry at December 31, and payment of the note at maturity. (b) What would be the effective interest rate? Complete this question by entering your answers in the tabs below. Reg 1 Req2 RegJA Reg30 Prepare the journal entries to record (a) the issuance of the note by Blanton Plastics and (6) LAT Bank's receivable on October 1, 2021 Cu no entry is required for a transaction/event, select "No journal entry required" in the first account feld. Enter your answers in whole dollars.) View transaction list View journal entry worksheet No Date General Journal Debit Credit Req 1 Reg 2 Reg 3A Req 3B Prepare the journal entries by both firms to record all subsequent events related to the note through a required for a transaction/event, select "No journal entry required" in the first account field. Enter your View transaction list Journal entry worksheet 2 3 Record the adjusting entry for the Blanton Plastics. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 Req 1 Req 2 Req Req 3B Prepare the journal entries by both firms to record all subsequent events related to th required for a transaction/event, select "No journal entry required" in the first account View transaction list X x 1 Record the adjusting entry for the Blanton Plastics. 2 Record the adjusting entry for the L&T Bank. 2 3 Record the maturity of the note for Blanton Plastics. 4. Record the maturity of the note for L&T Bank, Credit Note : journal entry has been entered Reg 1 Reg 2 Reg Reg 3B Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 15% is the bank's stated discount rate. (a) Prepare the journal entries to record the issuance of the noninterest-bearing note by Blanton Plastics on October 1, 2021, the adjusting entry at December 31, and payment of the note at maturity. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Enter your answers in whole dollars.) Show less View transaction list Journal entry worksheet 1 2 3 4 Record the issuance of note. Note: Enter debits before credits Debit Credit General Journal Date October 01 2021 o HI Nevt Required: 1. Prepare the journal entries to record(a) the issuance of the note by Blanton Plastics and (b) L&T Bank's recevable on October 1 2021 2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2022 3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 15% is the bank's stated discount rate. (a) Prepare the journal entries to record the issuance of the noninterest-bearing note by Blanton Plastics on October 1, 2021, the adjusting entry at December 31, and payment of the note at maturity, (b) What would be the effective interest rate? Complete this question by entering your answers in the tabs below. ces Reg 1 Reg 2 Reg 3A Reg 30 Suppose the face amount of the note was adjusted to include Interest (a noninterest bearing note) and 15% is the bank's stated discount rate. (b) What would be the effective interest rate? (Do not round Intermediate calculations and round your final answer to 1 decimal place.) Annual otactive rate
