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9-94B 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
9-94B
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:
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Prepare the necessary journal entry at January 1, 2020.
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Prepare the necessary journal entry at June 30, 2020.
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Prepare the necessary journal entry at December 31, 2020.
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Determine the carrying amount of these notes at the end of the fifth year (December 31, 2024).
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