Savvy Drive$-$Ins Ltd$.$ borrowed money by issuing $$3,000,000$ of $4\%$ bonds payable at $97\mathrm{.}5$ 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 Savvy receive when it issued the bonds payable? Journalize this transaction.

When the bonds payable were issued, Savvy received

Requirements

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

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

How much cash interest will Savvy pay each six months?

How much interest expense will Savvy 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 $1,2022.$