Question: On December 31 2011 Sorenson Financing Corporation borrowed 90 000 cash

On December 31, 2011, Sorenson Financing Corporation borrowed $90,000 cash on a $110,300, 24-month zero coupon note. Sorenson uses the straight-line method of amortization.

Required:
1. Record the borrowing in Sorenson’s journal.
2. Prepare the adjusting entry for December 31, 2012.
3. Prepare the entries to recognize the 2013 interest expense and repayment of the note on
December 31, 2013.

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  • CreatedSeptember 22, 2015
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