Entries for Bonds Payable and Instaltment Note Transactions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year. 1 July 1. Issued $6,180,000 of five-year, 9% callable bonds dated July 1 , Year 1 , at a market (effective) rate of 10%, receiving cash of 55,941,399. Interest is payable semiannually on December 31 and June 30 . Oct. 1. Borrowed $240,000 by issuing a 10 -year, 8% installment note to Nicks Bank. The note requires annual payments of 535,767, with the first payment occurring on september 30, Year 2. Dec. 31. Accrued \$4,800 of interest on the instaliment note. The interest is payable on the date of the next instaliment note payment. 31. Paid the semiannual interest on the bonds. The bond descount amortization of $23,660 is combined with the semiannual interest payment. Year 2 June 30. Paid the semiannual interest on the bond6. The bond discount amortization of $23,860 is cormbined with the semiannual interest payment, 5ept. 30. Paid 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 instaliment note. The interest is payable on the date of the next instaliment note parment. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $23,860 is combined with the semiannual interest payment Year 3 June 30. Recorded the redemption of the bonds, which were called at 98 . The balance in the bond discount account is $143,161 after payment 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 $17,892. Requiredt Round all amounts to the nearest dollar. 1. Journalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank. Chapter 14 HW Assignments 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. a. Year 1$ b. Year 2$ 3. Determine the carrying amount of the bonds as of December 31 , Year 2