Stern Corporation borrowed $10 million cash on September 1, 2021, to provide additional working capital for the year's production. Stern issued a 6-month, 10% promissory note to Second State Bank....

Stern Corporation borrowed $10 million cash on September 1, 2021, to provide additional working capital for the year's production. Stern issued a 6-month, 10% promissory note to Second State Bank. Interest on the note is payable at maturity. Each firm uses the calendar year as the fiscal year.

1.Prepare all journal entries from issuance to maturity for Stern Corporation.

2. Prepare all journal entries from issuance to maturity for Second State Bank.