On December 31, 2008, Sisek Company borrowed $800,000 with a 10-year, 9.75 percent note interest payable semiannually

Question:

On December 31, 2008, 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. Provide the necessary journal entry at December 31, 2008.

2. Provide the necessary journal entry at June 30, 2009.

3. Provide the necessary journal entry at December 31, 2009.

4. Determine the carrying amount of this note at the end of the fifth year (December 31, 2013).

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Cornerstones of Financial and Managerial Accounting

ISBN: 978-0324787351

1st Edition

Authors: Rich Jones, Mowen, Hansen, Heitger

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Question Posted: Jul 23, 2012 03:25 AM

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On December 31, 2008, Sisek Company borrowed $800,000 with a 10-year, 9.75 percent note interest payable semiannually

Question:

Step by Step Answer:

1 Cash 792800 Discount on Notes Payable 7200 Notes Payable 800000 2 Interest Expense 39...View the full answer

Cornerstones of Financial and Managerial Accounting

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