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Problem 9-94A (Algorithmic) Note Computations and Entries Straight Line) On January 1, 2020, Sisek Company borrowed $886,0004. Determine the carrying amount of this note at the end of the fifth year (December 31, 2024). Feedback Check My Work 4. Dis

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Answer #1
Date Accounts and explanation Debit(in $) Credit(in $)
30-Jun-20 Interest Expenses                                43,553
      Discounts on Bond payable                              360
      Cash                         43,193
31-Dec-20 Interest Expenses                                43,553
      Discounts on Bond payable                              360
      Cash                         43,193
Discount amortized for 5 years(10 payments) =$360*10 =$3,600
So Carrying amount as on December 31,2024 =$878,800 + $3,600 =$882,400
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