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 $6,560,000 of five-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 12%, receiving cash of $6,318,590. Interest is payable semiannually on December 31 and June 30.
Dec. 31.	Paid the semiannual interest on the bonds. The bond discount amortization of $24,141 is combined with the semiannual interest payment.
Dec. 31.	Closed the interest expense account.
Year 2
June 30.	Paid the semiannual interest on the bonds. The bond discount amortization of $24,141 is combined with the semiannual interest payment.
Dec. 31.	Paid the semiannual interest on the bonds. The bond discount amortization of $24,141 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 $144,846 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 answers to the nearest dollar.

Date	Account	Debit	Credit
Year 1
July 1	Bonds payableCashGain on bonds payableInterest expenseInterest payableNotes payableBonds payable	fill in the blank 2	fill in the blank 3
	Bonds payableDiscount on bonds payableInterest expenseInterest payableLoss on bonds payablePremium on bonds payableBonds payable	fill in the blank 5	fill in the blank 6
	Bonds payableCashDiscount on bonds payableInterest expenseIncome summaryPremium on bonds payableBonds payable	fill in the blank 8	fill in the blank 9
Dec. 31-Bond	Bonds payableCashIncome summaryInterest expenseInterest payableNotes payableBonds payable	fill in the blank 11	fill in the blank 12
	Accounts payableBonds payableDiscount on bonds payableIncome summaryInterest expenseInterest payableAccounts payable	fill in the blank 14	fill in the blank 15
	Bonds payableCashGain on bonds payableInterest expenseInterest payableNotes payableBonds payable	fill in the blank 17	fill in the blank 18
Dec. 31-Closing	Bonds payableCashDiscount on bonds payableIncome summaryInterest expenseNotes payable	fill in the blank 20
	Bonds payableCashDiscount on bonds payableIncome summaryInterest expenseInterest payable		fill in the blank 22
Year 2
June 30	Bonds payableCashDiscount on bonds payableInterest expenseInterest payableNotes payable	fill in the blank 24	fill in the blank 25
	Accounts payableBonds payableDiscount on bonds payableIncome summaryInterest expenseInterest payable	fill in the blank 27	fill in the blank 28
	Bonds payableCashInterest expenseInterest payableInterest revenueNotes payable	fill in the blank 30	fill in the blank 31
Dec. 31-Bond	Bonds payableDiscount on bonds payableInterest expenseInterest payableLoss on bonds payableNotes payable	fill in the blank 33	fill in the blank 34
	Accounts payableBonds payableDiscount on bonds payableIncome summaryInterest expenseInterest payable	fill in the blank 36	fill in the blank 37
	Accounts payableBonds payableCashGain on bonds payableInterest expenseInterest payable	fill in the blank 39	fill in the blank 40
Dec. 31-Closing	CashDiscount on bonds payableIncome summaryInterest expenseInterest payableNotes payable	fill in the blank 42
	CashBonds payableDiscount on bonds payableIncome summaryInterest expenseInterest payable		fill in the blank 44
Year 3
June 30	Bonds payableCashGain on redemption of bondsInterest expenseInterest receivableNotes payable	fill in the blank 46	fill in the blank 47
	CashDiscount on bonds payableInterest expenseInterest payableLoss on redemption of bondsNotes payable	fill in the blank 49	fill in the blank 50
	Bonds payableDiscount on bonds payableGain on redemption of bondsInterest expenseInterest payableInterest revenue	fill in the blank 52	fill in the blank 53
	Bonds payableCashGain on redemption of bondsInterest expenseInterest payableNotes payable	fill in the blank 55	fill in the blank 56

2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2.

a. Year 1 $fill in the blank 57 b. Year 2 $fill in the blank 58

3. Determine the carrying amount of the bonds as of December 31, Year 2. $fill in the blank 59