### InstructionsOn November 16, 2019, Clear Glass Company borrowed $20,000 from First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 14% and remitted the difference to Clear Glass.**Required:**1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar year-end adjusting entry, and payment of the note at maturity.2. Show how the preceding items would be reported on the December 31, 2019, balance sheet.3. Next Level: What is Clear Glass Company’s effective interest rate?### General Journal1. Prepare the necessary journal entries to record: - The issuance of the note on November 16, 2019. - The related adjustment on December 31, 2019. - Payment of the note on February 15, 2020. - Interest expense for 2020 on February 15, 2020.[General Journal Instructions]**General Journal Table**| Date | Account Title | Post Ref. | Debit | Credit ||------|---------------|-----------|-------|--------|| | | | | || | | | | || | | | | || | | | | || | | | | |### Balance Sheet2. Show how the preceding items would be reported on the December 31, 2019, balance sheet.[Balance Sheet Instructions]**Balance Sheet Table****CLEAR GLASS COMPANY**Partial Balance Sheet December 31, 2019| Current Liabilities: | | ||----------------------|---|---|| | | || | | |

Interest expense is the one which is paid on any kind of loan, bonds or securities.

Instructions General Journal X Balance Sheet On November 16, 2019, Clear Glass Company borrowed $20,000 from First American Bank by issuing a 90-day. 1. Prepare the necessary journal entries to record: 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet. non-interest-bearing note. The bank discounted this note at 16% and remitted the difference to Clear Glass. 1. the issuance of the note on November 16. 2019 2. the related adjustment on December 31, 2019 Required: 3. payment of the note on February 15, 200 Balance Sheet instructions 1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar 4 interest expense 2020 on February 15. 2020 vear-end adiusting entry and payment of the note at maturity 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet CLEAR GLASS COMPANY 3. Next Level what is Clear Glass Company's effective interest rate? Patial Balance Sheet General Jounal Instructions December 31. 2019 Current Liabilities: PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITUE POST, REF. DEBIT CREDIT

Instructions General Journal X Balance Sheet On November 16, 2019, Clear Glass Company borrowed $20,000 from First American Bank by issuing a 90-day. 1. Prepare the necessary journal entries to record: 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet. non-interest-bearing note. The bank discounted this note at 16% and remitted the difference to Clear Glass. 1. the issuance of the note on November 16. 2019 2. the related adjustment on December 31, 2019 Required: 3. payment of the note on February 15, 200 Balance Sheet instructions 1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar 4 interest expense 2020 on February 15. 2020 vear-end adiusting entry and payment of the note at maturity 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet CLEAR GLASS COMPANY 3. Next Level what is Clear Glass Company's effective interest rate? Patial Balance Sheet General Jounal Instructions December 31. 2019 Current Liabilities: PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITUE POST, REF. DEBIT CREDIT

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Proceeds from Notes Payable On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 120-day note with a face amount of $58,800. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 9%. $ 58,800 b. Determine the proceeds of the note, assuming the note is discounted at 9%. 60,618 X
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2020 a. July 1 b. December 31 2021 c. July 1 d. July 1 Loaned $62,000 to employees of the company and received back one-year, 10 percent notes. Accrued interest on the notes. Received interest on the notes. (No interest has been recorded since December 31.) Received principal on the notes. Required: Prepare the journal entries that Smart Solutions Incorporated would record for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)