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SavvySavvy Drive - Ins Ltd . borrowed money by issuing $ 6 comma 0 0 0 comma 0 0 0 $ 6 , 0 0
SavvySavvy DriveIns Ltd borrowed money by issuing $ comma comma $ of bonds payable at on July The bonds areyear bonds and pay interest each January and July
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Part
How much cash did SavvySavvy receive when it issued the bonds payable? Journalize this transaction.
When the bonds payable were issued, Savvy received
Part
Journalize the issuance of the bonds payable. Record debits first, then credits. Exclude explanations from any journal entries.
Journal Entry
Date
Accounts
Debit
Credit
Jul
Part
How much must SavvySavvy pay back at maturity? When is the maturity date?
At maturity, Savvy must pay back
Part
The maturity date is
July
July
July
Part
How much cash interest will SavvySavvy pay each six months?
Every six months, Savvy will pay interest of
Part
How much interest expense will SavvySavvy report each six months? Use the straightline amortization method. Journalize the entries for the accrual of interest and amortization of discount on December and the payment of interest on January
Every six months, Savvy will report interest expense of
Part
Journalize the entry for the accrual of interest and amortization of discount on DecemberRecord debits first, then credits. Exclude explanations from any journal entries.
Journal Entry
Date
Accounts
Debit
Credit
Dec
Part
Journalize the entry for the payment of interest on JanuaryRecord debits first, then credits. Exclude explanations from any journal entries.
Journal Entry
Date
Accounts
Debit
Credit
Jan
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