Non-interest Bearing Note (Straight Line)} On December 31, 2018, Sorenson Financing Corporation borrowed ($ 90,000) cash on

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Non-interest Bearing Note (Straight Line)}

On December 31, 2018, Sorenson Financing Corporation borrowed $\$ 90,000$ cash on a $\$ 110,300$, 24-month zero coupon note. Sorenson uses the straight-line method of amortization.

\section*{Required:}

1. Record the borrowing in Sorenson's journal.

2. Prepare the adjusting entry for December 31,2019 .

3. Prepare the entries to recognize the 2020 interest expense and repayment of the note on December 31, 2020.

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