Reference no: EM13994818
Blanton Plastics, a household plastic product manufacturer, borrowed $14 million cash on October 1, 2011, to provide working capital for year-end production. Blanton issued a four-month, 12% 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, 2011.
2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2012.
3. Suppose the face amount of the note was adjusted to include interest a non interest-bearing note) and 12% is the bank's stated discount rate.
(a) Prepare the journal entries to record the issuance of the non interest-bearing note by Blanton Plastics on October 1, 2011, the adjusting entry at December 31, and payment of the note at maturity.
(b) What would be the effective interest rate?
|
How this rail carrier will comply with dot transportation
: Provide at least two examples to demonstrate the corrosive nature of chlorine gas.
|
|
The simple trade model demonstrates
: The simple trade model demonstrates that countries can expand consumption by specializing in the production of goods and services in which they have a comparative advantage. In reality, we do not see complete specialization in production. State three..
|
|
Using the foreign exchange market diagram
: Using the foreign exchange market diagram, graphically illustrate and explain the impact of an increase in U.S. income, all else constant, on the exchange rate.
|
|
What are the three monetary policy tools of the fed
: What are the three monetary policy tools of the Fed? Briefly describe how each tool can be used to implement an expansionary monetary policy and a contractionary monetary policy.
|
|
What would be the effective interest rate
: Prepare the journal entries to record the issuance of the non interest-bearing note by Blanton Plastics on October 1, 2011, the adjusting entry at December 31, and payment of the note at maturity.
|
|
Find the current in each resistor of the figure
: Find the current in each resistor of the figure above by using the rules for resistors in series and parallel. Write three independent equations for the three currents using Kirchoff's laws.
|
|
Exogenous-endogenous variables in typical economic theory
: To better understand the role between exogenous and endogenous variables in a typical economic theory diagram, please draw four graphs that show the influence of each of the five following variables on the quantity of Baskin-Robbins Jamoca Almond Fud..
|
|
What is the modified duration
: What is the Macaulay duration of a 9.6 percent coupon bond with nine years to maturity and a current price of $965.40? What is the modified duration?
|
|
What the main assumptions of each theory
: What the main assumptions of each theory? What client might work better for each type of psychotherapy? If you were looking for help, which therapist would you go to and why
|