Recording Entries for Interest-Bearing and Noninterest-Bearing Notes interest rate of 11%. d. Answer (a) and (c) assuming that the note is noninterest-bearing. Use the straight-line method to amortize any discount on note payable. a. How much cash should Anne Taylor Company receive from the note on August 1 of Year 1 , assuming the note is a noninterest-bearing note? $ c. What liability amounts should be shown on the December 31 of Year 1 balance sheet