Blanton Plastics, a household plastic product manufacturer, borrowed $28 million cash on October 1, 2013, 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 Solution Present vale of the bond 28,000,000.00 Amount of Total interest 28000000*12%*4/12 = 1,120,000.00 Future value of the bond = 29,120,000.00 Journal Entries 01-Oct-13 Cash 28,000,000.00 Bonds Payable 28,000,000.00 31-Dec-13 Interest Expense 840,000.00 Bonds Payable 840,000.00 31-Jan-14 Bonds Payble 28,840,000.00 Interets Expense 280,000.00 Cash 29,120,000.00 .