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Savvy Drivo-Ins Ltd borrowed money by issuing $5 000,000 of 5% bonds payable at 97.5 on July 1 2018. The bonds are 10-year bonds and pay interest each January 1 and July 1 Read the toquitements 1. How much cash did Savvy receive when it issued the bonds payable? Journalize this transaction Savvy received $ when the bonds payable were issued Joumalize the issuance of the bonds payable (Record debits first then credits Exclude explanations from any journal entries Journal Entry Accounts Date Debit Credit 2. How much must Savvy pay back of maturity? When is the maturity date? At maturity. Savvy must pay back The maturity dale is 3. How much cash interest will Savvy pay each six months? 3. How much cash interest will Sawy pay each six months? Savvy will pay interest of each six months 4. How much interest expense will Savvy report each six months? Use the straight-line amortization method Journalize the ontries for the accrual of interest and amortization of discount on December 31, 2018, and the payment of interest on January 1 2018 Sawy will reports of interest expense och six months Jounice the entry for the accrunt of interest and amortization of discount on December 31, 2018. (Record debits hest, 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, 2019. (Record debits first then credits Exclude explanations from any journal entries.) Journal Entry Date Accounts Credit Debit Jan 1

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