Malcolm Company borrowed money by issuing $4,000,000 of 7% bonds payable at 102.6 on July 1, 2018. The bonds are five-year bonds and pay interest each January 1 and July 1. Read the requirements. 1. How much cash did Malcolm receive when it issued the bonds payable? Journalize this transaction. Malcolm received $ when the bonds payable were issued. Journalize the issuance of the bonds payable. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts Date Debit Credit Credit Jul 1 Cash Discount on Bonds Payable Bonds Payable 2. How much must Malcolm pay back at maturity? When is the maturity date? At maturity, Malcolm must pay back $ D The maturity date is 3. How much cash interest will Malcolm pay each six months? Malcolm will pay interest of $ each six months. Malcolm Company borrowed money by issuing $4,000,000 of 7% bonds payable at 102.6 on July 1, 2018. The bonds are five-year bonds and pay interest each January 1 and July 1. Read the requirements. 4. How much interest expense will Malcolm report each six months? Use the straight-line amortization method. Journalize the entries for the accrual of interest and the amortization of premium on December 31, 2018, and payment of interest on January 2019. Malcolm will reports of interest expense each six months. Journalize the entry for accrual of interest and amortization of discount on December 31, 2018. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Dec 31 L Journalize the entry for the payment of interest on January 1, 2019. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Jan