Sunset Drive-Ins Ltd. borrowed money by issuing $5,000,000 of 5% bonds payable at 96.5 on July 1, 2016. The bonds are 10-year bonds and pay interest each January 1 and July 1 How much cash did Sunset receive when it issued the bonds payable? Journalize this transaction 1. 2. How much must Sunset pay back at maturity? When is the maturity date? 3. How much cash interest will Sunset pay each six months? 4. How much interest expense will Sunset report each six months? Assume the straight-line amortization method. Journalize the entries for accrual of interest and amortization of discount on December 31, 2016, and payment of interest on January 1, 2017. 1. How much cash did Sunset receive when it issued the bonds payable? Journalize this transaction. 4825000 when the bonds payable were issued. Sunset received $ Journalize the issuance of the bonds payable. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Credit Date Accounts Debit 1 Cash 4825000 Jul Discount on Bonds Payable 175000 Bonds Payable 5000000 2. How much must Sunset pay back at maturity? When is the maturity date? Sunset Drive-Ins Ltd. borrowed money by issuing $5,000,000 of 5% bonds payable at 96.5 on July 1, 2016. The bonds are 10-year bonds and pay interest each January 1 and July 1 How much cash did Sunset receive when it issued the bonds payable? Journalize this transaction. 1. 2. How much must Sunset pay back at maturity? When is the maturity date? 3. How much cash interest will Sunset pay each six months? 4. How much interest expense will Sunset report each six months? Assume the straight-line amortization method. Journalize the entries for accrual of interest and amortization of discount on December 31, 2016, and payment of interest on January 1, 2017. 2. How much must Sunset pay back at maturity? When is the maturity date? 5000000 At maturity, Sunset must pay back $ The maturity date is July 1, 2026 3. How much cash interest will Sunset pay each six months? 125000 each six months. Sunset will pay interest of $ 4. How much interest expense will Sunset report each six months? Assume the straight-line amortization method. Journalize the entries for accrual of interest and amortization of discount on December 31, 2016, and payment of interest on January 1, 2017. Sunset will report $ 125000 of interest expense each six months. Journalize the entry for accrual of interest and amortization of discount on December 31, 2016. (Record debits first, then credits. Exclude explanations from any joumal January 1 and July 1 1. How much cash did Sunset receive when it issued the bonds payable? Journalize this transaction. 2. How much must Sunset pay back at maturity? When is the maturity date? 3. How much cash interest will Sunset pay each six months? 4. How much interest expense will Sunset report each six months? Assume the straight-line amortization method. Journalize the entries for accrual of interest and amortization of discount on December 31, 2016, and payment of interest on January 1, 2017. Journalize the entry for accrual of interest and amortization of discount on December 31, 2016. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit 31 Dec Journalize the entry for the payment of interest on January 1, 2017. (Record debits first, then credits. Exclude explanations from any jounal entries.) Journal Entry Date Accounts Debit Credit Jan 1 I. Dorrowed money by ISsuing payable at 9o.5 The bonds are T0-year Donds and pay interest each January 1 and July 1. 1. How much cash did Sunset receive when it issued the bonds payable? Journalize this transaction. 2. How much must Sunset pay back at maturity? When is the maturity date? 3. How much cash interest will Sunset pay each six months? 4. How much interest expense will Sunset report each six months? Assume the straight-line amortization method. Journalize the entries for accrual of interest and amortization of discount on December 31, 2016, and payment of interest on January 1, 2017 vaue ACOnto Dec 31 Journalize the entry for the payment of interest on January 1, 2017. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Debit Credit Date Accounts Jan