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Moonlight Drive-Ins Ltd borrowed money by issuing $3,000,000 of 8% bonds payable at 94.5 on July 1,2021 . The bonds are 10 -year bonds and
Moonlight Drive-Ins Ltd borrowed money by issuing $3,000,000 of 8% bonds payable at 94.5 on July 1,2021 . The bonds are 10 -year bonds and pay interest each January 1 and July 1. Read the requirements: Requirements 1. How much cash did Moonlight receive when it issued the bonds payable? Journalize this transaction 2. How much must Moonight pay back at maturity? When is the maturity date? 3. How much cash interest will Moonlight pay each six months? 4. How much interest expense wil Moonight report each six months? Use the straight-ine amortization method. Joumalize the entries for the accrual of interest and amortization of discount on December 31, 2021, and the payment of interest on January 1, 2022
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