Sh15 Blanton Plastics, a household plastic product manufacturer, borrowed $24 million cash on October 1, 2024, to provide working capitalfor year-end production. Blanton issued a four-month noninterest-bearing promissory note. 15% is the bank's stated discount rateRequired:(a) Prepare the journal entries to record the issuance of the noninterest-bearing note by Blanton Plastics on October 1, 2024, theadjusting 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 ASuppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 15% is the bank's stateddiscount 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 answersin whole dollars./View transaction listNo1Req B23DateOctober 01,2024View journal entry worksheetDecember 31,2024January 31,2025CashNotes payableGeneral JournalNo Transaction RecordedNo Transaction Recorded< Req AReq B >DebitCreditShow less A

Journal Entry is the primary step to record the transaction in the books of accounts. Notes payable…

Blanton Plastics, a household plastic product manufacturer, borrowed $24 million cash on October 1, 2024, to provide working capital for year-end production. Blanton issued a four-month noninterest-bearing promissory note. 15% is the bank's stated discount rate Required: (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?