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Entries for bonds payable, including bond redemption Instructions Chart of Accounts Journal Final Questions Instructions + The following transactions were completed by Winklevoss Inc., whose

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Entries for bonds payable, including bond redemption Instructions Chart of Accounts Journal Final Questions Instructions + The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1 July Dec 1 issued $76,600,000 of 20-yeur, 8% cailable bonds dated July 1. Year 1, at a market (effective) rato of 9%, receiving cash of $69,552.279. Interest is payable semiannually on December 31 and June 30, 31 Paid the semiannual interest on the bonds. The bond discount amortization of $176,163 is combined with the semiannual interest payment 31 Closed the interest expense account. Year 2 June Dec 30 Paid the semiannual Interest on the bonds. The bond discount amortization of $176,193 is combined with the semiannual interest payment 31 Paid the semiannual interest on the bonds. The bond discount amortization of $176,193 is combined with the semiannual interest payment 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 56,342,049 after payment of interest and amortization of discount have been recorded (Record the redemption only) Instructions with the semiannual interest payment 31 Closed the interest expense account Year 2 June Dec 30 Paid the semiannual interest on the bonds. The bond discount amortization of $176,193 is combined with the semiannual interest payment. 31 Paid the semiannual interest on the bands. The band discount armortization of $176,193 is combined with the semiannual interest payment 31 Closed the interest expense account Year 3 Juno 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is 86,342,949 after payment of interest and amortization of discount have been recorded. (Record the redemption only) Required: 1. Journalize the entries to record the transactions. Round all amounts to the nearest doar Refer to the Chart of Accounts for exact wording of account titles 2 Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. 3. Determine the carrying amount of the bonds as of December 31, Year 2 CHART OF ACCOUNTS Winklevoss Inc. General Ledger ASSETS 110 Cash REVENUE 410 Sales 610 Interest Revenue 611 Gain on Redemption of Bonds 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 142 Store Supplies 151 Prepaid Insurance EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 521 Sales Salaries Expense 522 Office Salaries Expense 531 Advertising Expense 191 Land 192 Store Equipment 532 Delivery Expense Chart of Accounts 192 Store Equipment 193 Accumulated Depreciation Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable 532 Delivery Expense 533 Repairs Expense 534 Selling Expenses 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 538 Store Supplies Expense 541 Bad Debt Expense 561 Depreciation Expense-Store Equipment 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 711 Loss on Redemption of Bonds EQUITY 311 Common Stock 312 Paid-in Capital in Excess of Par-Common Stock 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable 590 Miscellaneous Expense 710 Interest Expense 711 Loss on Redemption of Bonds EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-in Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary ta: Jourmalize the entries to record the Year 1 transactions. Refer to the Chart of Accounts for exact wording of account tities How does grading work? JOURNAL Score: 88/100 ACCOUNTING EQUATION DATE POSTRE DEBUT CREDIT ASSETS LIABILITIES EQUITY 1 76,600,000.00 4 1 7,047721.00 1 DESCRIPTION Jul 1 Discount on Bonds Payable Cash Bonds Payable Dec. 31' Interest Expense Discount on Bonds Payable Cash 76,600,000.00 4 4,006,193.00 5 176,193.00 6 5,850,000.00 . Dec. 31 Income Summary Interest Expense 4,006,193.00 4,006,195.00 1 Journal 15. Joumalize the entries to record the Year 2 transactions. Refer to the Chart of Accounts for exact wording of accountries How does srading work? PAGE 10 JOURNAL Score: 88/100 ACCOUNTING EQUATION POST REY DEBIT CREDIT ASSETS LABILITIES EQUITY 1 4,006,193.00 2 176,19500 1 DATE DESCRIPTION Jun 30 Interest Expense Discount on Bonds Payable Gash Dec 31 Interest Expense Discount on Bonds Payable 3 3,830,000.00 4,006,19300 176,193.00 3,830,000.00 . 7,836,195.00 ! Dec. 31' Income Summary Interest Expense 7,836,193.00 1 Journal Shaded cds have feedback PORT te Jumalize the entries to more the Year 3 transactions Pater to the Churt of Acounts for exact wonding of account de How.drosscoding work? DE 10 JOURNAL Score: 47/49 ACCOUNTING EQUATION POST CREDIT ASSETS EQUITY 1 DEBIT 76.600.000.00 LAUTE 1 DATE DESCRPION Jun 50 Bons Payable Los on Redemption of fonds Discount on Bands Payable Cast 6,342.00 1 4342.999.00 75.063.000.00 1 Point 859 Chew Wor Check My Work Final Questions 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. Year 1: $ Year 2: 3. Determine the carrying amount of the bonds as of December 31, Year 2

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