NOTE COMPUTATIONS AND ENTRIES USING T-ACCOUNTS. On January 1, 19x1, Sisek Company issued 10-year, $800,000, 9.75% notes, interest payable at 4.875% semiannually. Cash in the amount of $792,800 was received when the notes were issued.

REQUIRED:

1. Record the sale of the notes in T-accounts.

2. Record the first interest payment on June 30, 19x1, in T-accounts.

3. Record the second interest payment on December 31, 19x1, in T-accounts.

4. What is the carrying amount of these notes at the end of the fifth year (December 31, 19x5)?