On January 1, 2020, Benton Corporation borrowed $1,000,000 with 10-year, 8.75% notes, interest payable semiannually on June

Question:

On January 1, 2020, Benton borrowed $1,000,000 with 10-year, 8.75% notes, interest payable semiannually on June 30 and December 31. Cash in the amount of $985,500 was received when the note was issued.
Required:
1. Prepare the necessary journal entry at January 1, 2020.
2. Prepare the necessary journal entry at June 30, 2020.
3. Prepare the necessary journal entry at December 31, 2020.
4. Determine the carrying amount of these notes at the end of the fifth year (December 31, 2024).
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...