Entries for Bonds Payable and installment Note Transactions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued 57,150,000 of five-year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of 11%, receiving cash of $6,611,060. Interest is payable semiannually on December 31 and June 30 Oct. 1. Borrowed $240,000 by issuing a 10-year, 8% instilment note to Nicks Bank. The note requires annual payments of $35,767, wit first payment occurring on September 30, Year 2. Dec. 31. Accrued $4,800 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31. Pald the semiannual interest on the bonds. The band discount amortization of $53,894 is combined with the semiannual interest payment Year 2 June 30. Pald the semiannual interest on the bonds. The bond discount amortization of $53,894 is combined with the semiannual interest payment Sept. 30. Pald the annual payment on the note, which consisted of interest of $19,200 and principal of $16,567 Dec 31. Accrued $4,469 of interest on the installment note. The interest is payable on the date of the next installment note payment, 31. Paid the semiannual interest on the bands. The bond discount amortization of $53,894 is combined with the semiannum interest payment, Year 3 Year 3 June 30. Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $323,354 after payn interest and amortization of discount have been recorded. Record the redemption only. Sept. 30. Paid the second annual payment on the note, which consisted of interest of $17,875 and principal of $17,392. Required: Round all amounts to the nearest dollar 1 1. Journalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank Date Account Debit Credit Year 1 July 1 Oct. 1 Dec. 31-Note 22 Dec. 31-Note Dec. 31-Bond Year 2 June 30 III II III III III III Sept. 30 Dec. 31. Note Dec. 31-Bond Year 3 III III III II June 30 Sept. 30 2:33 PM -6 Year 3 June 30 III IIII III Sept. 30 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. a. Year 1 b. Year 2 3. Determine the carrying amount of the bonds as of December 31, Year 2