SavvySavvy $$Drive$-$Ins Ltd$.$ borrowed money by issuing $ $6$ comma $000$ comma $000$$$6,000,000$ of $77\%$ bonds payable at $92\mathrm{.}592\mathrm{.}5$ on July$1,20212021.$ The bonds are$10-$year bonds and pay interest each January $1$ and July $1.$

Read the requirements LOADING... $.$

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Part $1$

$1.$ How much cash did SavvySavvy receive when it issued the bonds$$ payable? Journalize this transaction.

When the bonds payable were issued, Savvy received

Part $2$

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

$1$

Part $3$

$2.$ How much must SavvySavvy pay back at$$ maturity? When is the maturity$$ date?

At maturity, Savvy must pay back

Part $4$

The maturity date is

$$

July $1,2021$

July $1,2022$

July $1,2031$

Part $5$

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

Every six months, Savvy will pay interest of

Part $6$

$4.$ How much interest expense will SavvySavvy report each six$$ months? Use the$$ straight$-$line amortization method. Journalize the entries for the accrual of interest and amortization of discount on December$31,20212021,$ and the payment of interest on January$1,20222022.$

Every six months, Savvy will report interest expense of

Part $7$

Journalize the entry for the accrual of interest and amortization of discount on December$31,20212021.($Record debits$$ first, then credits. Exclude explanations from any journal$$ entries.$)$

Journal Entry

Date

Accounts

Debit

Credit

Dec

$31$

Part $8$

Journalize the entry for the payment of interest on January$1,20222022.($Record debits$$ first, then credits. Exclude explanations from any journal$$ entries.$)$

Journal Entry

Date

Accounts

Debit

Credit

Jan

$1$