Blanton Plastics, a household plastic product manufacturer, borrowed $25 million cash on October 1, 2024, to...

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Blanton Plastics, a household plastic product manufacturer, borrowed $25 million cash on October 1, 2024, to provide working capital for year-end production. Blanton issued a four-month, 9% 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, 2024. 2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2025. 3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% 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, 2024, 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. Req 1 Req 2 Req 3A Req 3B 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, 2024. Note: 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. View transaction list Journal entry worksheet < 1 2 Record the issuance of the note by Blanton Plastics. Note: Enter debits before credits. General Journal Date October 01, 2024 Record entry Clear entry < Req 1 Debit Credit View general journal Req 2 > > Show less Journal entry worksheet < 1 2 Record the receipt of the note by L&T Bank. Note: Enter debits before credits. General Journal Date October 01, 2024 Record entry Clear entry Debit Credit View general journal Blanton Plastics, a household plastic product manufacturer, borrowed $25 million cash on October 1, 2024, to provide working capital for year-end production. Blanton issued a four-month, 9% 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, 2024. 2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2025. 3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% 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, 2024, 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. Req 1 Req 2 Req 3A Req 3B Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2025. Note: 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. View transaction list Journal entry worksheet < 1 2 3 4 Record the adjusting entry for Blanton Plastics. Note: Enter debits before credits. General Journal Date December 31, 2024 Record entry Clear entry < Req 1 Debit Credit View general journal Req 3A > > Show less Journal entry worksheet < 1 2 3 Record the adjusting entry for L&T Bank. Date December 31, 2024 4 Note: Enter debits before credits. General Journal Record entry Clear entry Debit Credit View general journal > Journal entry worksheet 1 2 < 3 4 Record the payment by Blanton Plastics. Note: Enter debits before credits. General Journal Date January 31, 2025 Record entry Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 Record the receipt by L&T Bank. Note: Enter debits before credits. General Journal Date January 31, 2025 4 Record entry Clear entry Debit Credit View general journal Blanton Plastics, a household plastic product manufacturer, borrowed $25 million cash on October 1, 2024, to provide working capital for year-end production. Blanton issued a four-month, 9% 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, 2024. 2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2025. 3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% 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, 2024, 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. Req 2 Req 3A Req 3B Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% 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, 2024, the adjusting entry at December 31, and payment of the note at maturity. Note: 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. Req 1 View transaction list Journal entry worksheet < 1 2 3 4 Record the issuance of note. Note: Enter debits before credits. General Journal Date October 01, 2024 Record entry Clear entry Debit Credit > View general journal Show less Journal entry worksheet < 1 2 3 Record the adjusting entry. Note: Enter debits before credits. General Journal Date December 31, 2024 4 Record entry Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 Record the interest expense at maturity. Note: Enter debits before credits. General Journal Date January 31, 2025 4 Record entry Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 4 Record payment of the note payable. Note: Enter debits before credits. General Journal Date January 31, 2025 Record entry Clear entry Debit Credit View general journal Blanton Plastics, a household plastic product manufacturer, borrowed $25 million cash on October 1, 2024, to provide working capital for year-end production. Blanton issued a four-month, 9% 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, 2024. 2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2025. 3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% 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, 2024, 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. Req 1 Req 2 Req 3A Req 3B Suppose the face amount of the note was adjusted to include interest (a noninterest- bearing note) and 9% is the bank's stated discount rate. (b) What would be the effective interest rate? Note: Do not round intermediate calculations and round your final answer to 1 decimal place. Effective interest rate % < Req 3A Req 3B > Show less Blanton Plastics, a household plastic product manufacturer, borrowed $25 million cash on October 1, 2024, to provide working capital for year-end production. Blanton issued a four-month, 9% 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, 2024. 2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2025. 3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% 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, 2024, 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. Req 1 Req 2 Req 3A Req 3B 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, 2024. Note: 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. View transaction list Journal entry worksheet < 1 2 Record the issuance of the note by Blanton Plastics. Note: Enter debits before credits. General Journal Date October 01, 2024 Record entry Clear entry < Req 1 Debit Credit View general journal Req 2 > > Show less Journal entry worksheet < 1 2 Record the receipt of the note by L&T Bank. Note: Enter debits before credits. General Journal Date October 01, 2024 Record entry Clear entry Debit Credit View general journal Blanton Plastics, a household plastic product manufacturer, borrowed $25 million cash on October 1, 2024, to provide working capital for year-end production. Blanton issued a four-month, 9% 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, 2024. 2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2025. 3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% 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, 2024, 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. Req 1 Req 2 Req 3A Req 3B Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2025. Note: 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. View transaction list Journal entry worksheet < 1 2 3 4 Record the adjusting entry for Blanton Plastics. Note: Enter debits before credits. General Journal Date December 31, 2024 Record entry Clear entry < Req 1 Debit Credit View general journal Req 3A > > Show less Journal entry worksheet < 1 2 3 Record the adjusting entry for L&T Bank. Date December 31, 2024 4 Note: Enter debits before credits. General Journal Record entry Clear entry Debit Credit View general journal > Journal entry worksheet 1 2 < 3 4 Record the payment by Blanton Plastics. Note: Enter debits before credits. General Journal Date January 31, 2025 Record entry Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 Record the receipt by L&T Bank. Note: Enter debits before credits. General Journal Date January 31, 2025 4 Record entry Clear entry Debit Credit View general journal Blanton Plastics, a household plastic product manufacturer, borrowed $25 million cash on October 1, 2024, to provide working capital for year-end production. Blanton issued a four-month, 9% 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, 2024. 2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2025. 3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% 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, 2024, 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. Req 2 Req 3A Req 3B Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% 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, 2024, the adjusting entry at December 31, and payment of the note at maturity. Note: 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. Req 1 View transaction list Journal entry worksheet < 1 2 3 4 Record the issuance of note. Note: Enter debits before credits. General Journal Date October 01, 2024 Record entry Clear entry Debit Credit > View general journal Show less Journal entry worksheet < 1 2 3 Record the adjusting entry. Note: Enter debits before credits. General Journal Date December 31, 2024 4 Record entry Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 Record the interest expense at maturity. Note: Enter debits before credits. General Journal Date January 31, 2025 4 Record entry Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 4 Record payment of the note payable. Note: Enter debits before credits. General Journal Date January 31, 2025 Record entry Clear entry Debit Credit View general journal Blanton Plastics, a household plastic product manufacturer, borrowed $25 million cash on October 1, 2024, to provide working capital for year-end production. Blanton issued a four-month, 9% 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, 2024. 2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2025. 3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% 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, 2024, 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. Req 1 Req 2 Req 3A Req 3B Suppose the face amount of the note was adjusted to include interest (a noninterest- bearing note) and 9% is the bank's stated discount rate. (b) What would be the effective interest rate? Note: Do not round intermediate calculations and round your final answer to 1 decimal place. Effective interest rate % < Req 3A Req 3B > Show less

Answer rating: 100% (QA)

1 Prepare the journal entries to record a the issuance of the note by Blanton Plastics on October 01 2024 Date General Journal Debit Credit Oct 01 202... View the full answer