Entries for Bonds Payable, including bond redemption

bund Premium Entries for Bonds Payable, including bond redemption The following transactions were completed by Winklevoss Inc, whose fiscal year is the calendar year: Year 1 July 1. Issued $4,250,000 of five-year, 10% Callable bonds dated July 1, Year 1, at a market (effective) rate of 11%, receiving cash of $4,118,695. Interest is payable semiannually on December 31 and June 30. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $16,131 is combined with the semiannual interest payment Dec. 31. Closed the interest expense account Year 2 June 30. Pald the semiannual interest on the bonds. The bond discount amortization of 516,131 ls combined with the semiannual interest payment Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $16,131 is combined with the semiannual interest payment Dec. 31. Closed the interest expense account Year 3 June 30. Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $96,783 after payment of interest and amortization of discount have been recorded. (Record the redemption only) Required: 1. Journalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank or enter"0" When required, round your answer to the nearest dollar Date Debit Credit Date Account Year 1 Cash July 1 Discount on bonds payable Bonds payable THE MI Dec. 31-Bond Interest expense Discount on bonds payable Cash Dec. 31-Closing Income summary Interest expense Year 2 June 30 Interest expense Discount on bonds payable Cash Dec. 31-Bond Interest expense Discount on bonds payable Cash Interest expense Dec. 31-Bond Discount on bonds payable MI I III Cash Income summary Dec. 31-Closing Interest expense Year 3 June 30 Bonds payable Loss on redemption of bonds Discount on bonds payable Cash 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