(Solution) - On December 31 2011 Sisek Company borrowed 800 000 with a -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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On December 31, 2011, Sisek Company borrowed $800,000 with a 10-year, 9.75 percent note, interest payable semiannually on June 30 and December 31. Cash in the amount of $792,800 was received when the note was issued.

Required:
1. Prepare the necessary journal entry at December 31, 2011.
2. Prepare the necessary journal entry at June 30, 2012.
3. Prepare the necessary journal entry at December 31, 2012.
4. Determine the carrying amount of these notes at the end of the fifth year (December 31, 2016).