Sheldon Jones borrowed money by issuing two notes on March 1, Year 1. The financing transactions are described next. 1. Borrowed funds by issuing a $30,500 face value discount note to Farmers Bank. The note had an 6.50 percent discount rate, a one-year term to maturity, and was paid off on March 1, Year 2. 2. Borrowed funds by issuing a $30,500 face value, interest-bearing note to Valley Bank. The note had an 6.50 percent stated rate of interest, a one-year term to maturity, and was paid off on March 1, Year 2. Required a. Show the effects of issuing the two notes on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. b. What is the total amount of interest to be paid on each note? c. What amount of cash was received from each note when it was issued? d-1. Calculate the effective interest rate of each note. d-2. Which note has the higher effective interest rate? Complete this question by entering your answers in the tabs below. Show the effects of issuing the discount note on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials (OA) to designate operating activity, (IA) for investing activity, and (FA) for financing activity. Not all cells require input. Round your answers to the nearest whole dollar. Sheldon Jones borrowed money by issuing two notes on March 1, Year 1 . The financing transactions are described next. 1. Borrowed funds by issuing a $30,500 face value discount note to Farmers Bank. The note had an 6.50 percent discount rate, a one-year term to maturity, and was paid off on March 1, Year 2. 2. Borrowed funds by issuing a $30,500 face value, interest-bearing note to Valley Bank. The note had an 6.50 percent stated rate of interest, a one-year term to maturity, and was paid off on March 1, Year 2. Required a. Show the effects of issuing the two notes on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. b. What is the total amount of interest to be paid on each note? c. What amount of cash was received from each note when it was issued? d-1. Calculate the effective interest rate of each note. d-2. Which note has the higher effective interest rate? Complete this question by entering your answers in the tabs below. Show the effects of issuing the interest bearing note on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials (OA) to designate operating activity, (IA) for investing activity, and (FA) for financing activity. Not all cells require input. Sheldon Jones borrowed money by issuing two notes on March 1, Year 1. The financing transactions are described next. 1. Borrowed funds by issuing a $30,500 face value discount note to Farmers Bank. The note had an 6.50 percent discount rate, a one-year term to maturity, and was paid off on March 1, Year 2. 2. Borrowed funds by issuing a $30,500 face value, interest-bearing note to Valley Bank. The note had an 6.50 percent stated rate of interest, a one-year term to maturity, and was paid off on March 1 , Year 2. Required a. Show the effects of issuing the two notes on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. b. What is the total amount of interest to be paid on each note? c. What amount of cash was received from each note when it was issued? d-1. Calculate the effective interest rate of each note. d-2. Which note has the higher effective interest rate? Complete this question by entering your answers in the tabs below. What is the total amount of interest to be paid on each note? Note: Round your answers to nearest dollar amount. Sheldon Jones borrowed money by issuing two notes on March 1, Year 1. The financing transactions are described next. 1. Borrowed funds by issuing a $30,500 face value discount note to Farmers Bank. The note had an 6.50 percent discount rate, a one-year term to maturity, and was paid off on March 1, Year 2. 2. Borrowed funds by issuing a $30,500 face value, interest-bearing note to Valley Bank. The note had an 6.50 percent stated rate of interest, a one-year term to maturity, and was paid off on March 1, Year 2. Required a. Show the effects of issuing the two notes on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. b. What is the total amount of interest to be paid on each note? c. What amount of cash was received from each note when it was issued? d-1. Calculate the effective interest rate of each note. d-2. Which note has the higher effective interest rate? Complete this question by entering your answers in the tabs below. What amount of cash was received from each note when it was issued? Note: Round your answers to nearest dollar amount. Sheldon Jones borrowed money by issuing two notes on March 1, Year 1. The financing transactions are described next. 1. Borrowed funds by issuing a $30,500 face value discount note to Farmers Bank. The note had an 6.50 percent discount rate, a one-year term to maturity, and was paid off on March 1, Year 2. 2. Borrowed funds by issuing a $30,500 face value, interest-bearing note to Valley Bank. The note had an 6.50 percent stated rate of interest, a one-year term to maturity, and was paid off on March 1 , Year 2. Required a. Show the effects of issuing the two notes on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. b. What is the total amount of interest to be paid on each note? c. What amount of cash was received from each note when it was issued? d-1. Calculate the effective interest rate of each note. d-2. Which note has the higher effective interest rate? Complete this question by entering your answers in the tabs below. Calculate the effective interest rate of each note. Note: Round your answers to 1 decimal place. Sheldon Jones borrowed money by issuing two notes on March 1, Year 1. The financing transactions are described next. 1. Borrowed funds by issuing a $30,500 face value discount note to Farmers Bank. The note had an 6.50 percent discount rate, a one-year term to maturity, and was paid off on March 1, Year 2. 2. Borrowed funds by issuing a $30,500 face value, interest-bearing note to Valley Bank. The note had an 6.50 percent stated rate of interest, a one-year term to maturity, and was paid off on March 1 , Year 2. Required a. Show the effects of issuing the two notes on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. b. What is the total amount of interest to be paid on each note? c. What amount of cash was received from each note when it was issued? d-1. Calculate the effective interest rate of each note. d-2. Which note has the higher effective interest rate? Complete this question by entering your answers in the tabs below. Which note has the higher effective interest rate? Sheldon Jones borrowed money by issuing two notes on March 1, Year 1. The financing transactions are described next. 1. Borrowed funds by issuing a $30,500 face value discount note to Farmers Bank. The note had an 6.50 percent discount rate, a one-year term to maturity, and was paid off on March 1, Year 2. 2. Borrowed funds by issuing a $30,500 face value, interest-bearing note to Valley Bank. The note had an 6.50 percent stated rate of interest, a one-year term to maturity, and was paid off on March 1, Year 2. Required a. Show the effects of issuing the two notes on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. b. What is the total amount of interest to be paid on each note? c. What amount of cash was received from each note when it was issued? d-1. Calculate the effective interest rate of each note. d-2. Which note has the higher effective interest rate? Complete this question by entering your answers in the tabs below. Show the effects of issuing the discount note on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials (OA) to designate operating activity, (IA) for investing activity, and (FA) for financing activity. Not all cells require input. Round your answers to the nearest whole dollar. Sheldon Jones borrowed money by issuing two notes on March 1, Year 1 . The financing transactions are described next. 1. Borrowed funds by issuing a $30,500 face value discount note to Farmers Bank. The note had an 6.50 percent discount rate, a one-year term to maturity, and was paid off on March 1, Year 2. 2. Borrowed funds by issuing a $30,500 face value, interest-bearing note to Valley Bank. The note had an 6.50 percent stated rate of interest, a one-year term to maturity, and was paid off on March 1, Year 2. Required a. Show the effects of issuing the two notes on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. b. What is the total amount of interest to be paid on each note? c. What amount of cash was received from each note when it was issued? d-1. Calculate the effective interest rate of each note. d-2. Which note has the higher effective interest rate? Complete this question by entering your answers in the tabs below. Show the effects of issuing the interest bearing note on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials (OA) to designate operating activity, (IA) for investing activity, and (FA) for financing activity. Not all cells require input. Sheldon Jones borrowed money by issuing two notes on March 1, Year 1. The financing transactions are described next. 1. Borrowed funds by issuing a $30,500 face value discount note to Farmers Bank. The note had an 6.50 percent discount rate, a one-year term to maturity, and was paid off on March 1, Year 2. 2. Borrowed funds by issuing a $30,500 face value, interest-bearing note to Valley Bank. The note had an 6.50 percent stated rate of interest, a one-year term to maturity, and was paid off on March 1 , Year 2. Required a. Show the effects of issuing the two notes on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. b. What is the total amount of interest to be paid on each note? c. What amount of cash was received from each note when it was issued? d-1. Calculate the effective interest rate of each note. d-2. Which note has the higher effective interest rate? Complete this question by entering your answers in the tabs below. What is the total amount of interest to be paid on each note? Note: Round your answers to nearest dollar amount. Sheldon Jones borrowed money by issuing two notes on March 1, Year 1. The financing transactions are described next. 1. Borrowed funds by issuing a $30,500 face value discount note to Farmers Bank. The note had an 6.50 percent discount rate, a one-year term to maturity, and was paid off on March 1, Year 2. 2. Borrowed funds by issuing a $30,500 face value, interest-bearing note to Valley Bank. The note had an 6.50 percent stated rate of interest, a one-year term to maturity, and was paid off on March 1, Year 2. Required a. Show the effects of issuing the two notes on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. b. What is the total amount of interest to be paid on each note? c. What amount of cash was received from each note when it was issued? d-1. Calculate the effective interest rate of each note. d-2. Which note has the higher effective interest rate? Complete this question by entering your answers in the tabs below. What amount of cash was received from each note when it was issued? Note: Round your answers to nearest dollar amount. Sheldon Jones borrowed money by issuing two notes on March 1, Year 1. The financing transactions are described next. 1. Borrowed funds by issuing a $30,500 face value discount note to Farmers Bank. The note had an 6.50 percent discount rate, a one-year term to maturity, and was paid off on March 1, Year 2. 2. Borrowed funds by issuing a $30,500 face value, interest-bearing note to Valley Bank. The note had an 6.50 percent stated rate of interest, a one-year term to maturity, and was paid off on March 1 , Year 2. Required a. Show the effects of issuing the two notes on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. b. What is the total amount of interest to be paid on each note? c. What amount of cash was received from each note when it was issued? d-1. Calculate the effective interest rate of each note. d-2. Which note has the higher effective interest rate? Complete this question by entering your answers in the tabs below. Calculate the effective interest rate of each note. Note: Round your answers to 1 decimal place. Sheldon Jones borrowed money by issuing two notes on March 1, Year 1. The financing transactions are described next. 1. Borrowed funds by issuing a $30,500 face value discount note to Farmers Bank. The note had an 6.50 percent discount rate, a one-year term to maturity, and was paid off on March 1, Year 2. 2. Borrowed funds by issuing a $30,500 face value, interest-bearing note to Valley Bank. The note had an 6.50 percent stated rate of interest, a one-year term to maturity, and was paid off on March 1 , Year 2. Required a. Show the effects of issuing the two notes on the financial statements using separate horizontal financial statement models. Record the transaction amounts under the appropriate categories. Record only the events occurring on the date of issue. Do not record accrued interest or the repayment at maturity. b. What is the total amount of interest to be paid on each note? c. What amount of cash was received from each note when it was issued? d-1. Calculate the effective interest rate of each note. d-2. Which note has the higher effective interest rate? Complete this question by entering your answers in the tabs below. Which note has the higher effective interest rate