Latenight Drive$-$Ins Ltd$.$ borrowed money by issuing $$5,500,000$ of $4\%$ bonds payable at $96\mathrm{.}5$ on July $1,2021.$ The bonds are $10-$year bonds and pay interest each January $1$ and July $1.$

Read the requirements.

How much cash did Latenight receive when it issued the bonds payable? Journalize this transaction.

When the bonds payable were issued, Latenight received

Journalize the issuance of the bonds payable. $($Record debits first, then credits. Exclude explanations from any journal entries.$)$

$\backslash$table$[[$Journal Entry$],[$Jul Accounts$]]$

How much must Latenight pay back at maturity? When is the maturity date?

At maturity, Latenight must pay back

The maturity date is

$3.$ How much cash interest will Latenight pay each six months?

Every six months, Latenight will pay interest of

$4.$ How much interest expense will Latenight report each six months? Use the straight$-$line amortization method. Journalize the entries for the accrual of interest and amortization of discount on December $31,2021,$ and the payment of interest on January $1,2022.$

Every six months, Latenight will report interest expense of

Journalize the entry for the accrual of interest and amortization of discount on December $31,2021.($Record debits first, then credits. Exclude explanations from any journal entries.$)$

Journal Entry

$\backslash$table$[[$Date$,$Journ:$],[$Accounts$,$Debit,Credit$],[$Dec$,31,,,],[,,,,],[,,,,],[,,,,]]$

Journalize the entry for the payment of interest on January $1,2022.($Record debits first, then credits. Exclude explanations from any journal entries.$)$

Journal Entry