Note Computations and Entries (Straight Line)}

On December 31, 2018, Sisek Company borrowed \(\$ 800,000\) with a 10 -year, \(9.75 \%\) note, interest payable semiannually on June 30 and December 31. Cash in the amount of \(\$ 792,800\) was received when the note was issued. Sisek Company uses the straight-line amortization method.

\section*{Required:}

1. Prepare the necessary journal entry at December 31, 2018 .

2. Prepare the necessary journal entry at June 30, 2019.

3. Prepare the necessary journal entry at December \(31,2019\).

4. Determine the carrying amount of these notes at the end of the fifth year (December 31, 2023).

\section*{Problem