Sonic Drive$-$Ins Ltd$.$ borrowed money by issuing $$3,500,000$ of $8\%$ bonds payable at $94\mathrm{.}5$ on July $1,2021.$ The bonds are $10-$year bonds and pay interest each January $1$ and July $1.$

Requirements

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

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

How much cash interest will Sonic pay each six months?

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