Required: Do a journal entry for each date.

No interest on issuance needs to be mentioned. The entry only requres the calculation using the discount rate.

Sept. 1 Supported by the credit line, issued $1 million of commercial paper on a six-month note. Interest was discounted at issuance at a 8% discount rate. Dec. 31 Recorded any necessary adjusting entry on the note above. Dec. 31 During 2016, credit sales totaled $6,000,000. The state sales tax rate is 6% and the local sales tax rate is 2%. Feb. 28 Paid the commercial paper at maturity