On January 1, 2020, Benton Corporation 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).