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 a. How much cash should Anne Taylor Company receive on the note, assuming the note is an interest-bearing note? 63,270 $ Dr. Cr. b. 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 1. Aug. 1, 2020 Cash 63,270 Note Payable 63,270 2. Dec 31, 2020 Interest Expense 2,900 0 Interest Payable 2.900 3. July 31, 2021 Interest Expense 63,270 x Interest Payable 2,900 Interest Expense 70,230 a 0 07 X 4,060 X 0 Cash 4. What liability amount(s) 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 Note Payable 63,270 x Interest Payable 2,900 X a X $ X $ 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? $ 57,000 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. Aug. 1, 2020 Cash 57,000 Discount on Note Payable Note Payable 63,270 2. Dec. 31, 2020 Interest Expense 2,613 Discount on Note Payable 2,613 3. July 31, 2021 Interest Payable Interest Expense . 6,270 > > > . 0 . 0 > X 0 X 0 a 0 X 0 > Cash . 0 X Interest Expense X 0 x 4. What liability amount(s) 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 Note Payable 63,270 x $