Superb Drive-Ins Ltd. borrowed money by issuing $5,500,000 of 7% bonds payable at 96.5 on July 1, 2016. The bonds are 10-year bonds and pay interest each January 1 and July 1. 1. 2. 3. How much cash did Superb receive when it issued the bonds payable? Journalize this transaction. How much must Superb pay back at maturity? When is the maturity date? How much cash interest will Superb pay each six months? How much interest expense will Superb 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. 4. 1. How much cash did Superb receive when it issued the bonds payable? Journalize this transaction. Superb received $ when the bonds payable were issued. 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 2. How much must Superb pay back at maturity? When is the maturity date? At maturity, Superb must pay back $ The maturity date is 3. How much cash interest will Superb pay each six months? Superb will pay interest of $ each six months. 4. How much interest expense will Superb 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. Superb will report $ 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 journal entries.) Journal Entry Date Accounts Debit Credit 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 Date Accounts Debit Credit 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 Date Accounts Debit Credit Jan