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Recording Entries for Interest-Bearing and Noninterest-Bearing Notes Anne Taylor Company borrowed cash on August 1, 2020, and signed a $63,270 (face amount), one-year note payable,
Recording Entries for Interest-Bearing and Noninterest-Bearing Notes Anne Taylor Company borrowed cash on August 1, 2020, and signed a $63,270 (face amount), one-year note payable, due on July 31, 2021. The accounting period of Anne Taylor ends December 31. Assume an effective interest rate of 11%. Interest-Bearing Note Noninterest Bearing Note c. Now assuming that the note is noninterest-bearing answer the following questions assuming that the company uses the straight-line method to amortize any discount on note payable. How much cash should Anne Taylor Company receive on the note? $ Provide the following entries: 1. August 1, 2020, date of the loan 2. December 31, 2020, adjusting entry 3. July 31, 2021, payment of the note. Note: List multiple debits or credits (when applicable in alphabetical order. Note: Round your answers to the nearest whole dollar. Date Account Name Dr. Cr. 1. ALG. 1.2020 0 D 0 2. Der 31, 2120 0 2. July 31, 2021 = 0 . . 4. What liability amountis) should be shown on the December 31, 2020, balance sheet? Note: List accounts in alphabetical order based on the account name. Balance Sheet, Dec. 31 2020 Current liabilities
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