Question
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
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 $6,500,000 of five-year, 9% callable bonds dated July 1, Year 1 , at a market (effective) rate of 10% , receiving cash of $6,249,042 . Interest is payable semiannually on December 31 and June 30 . Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $25,096 is combined with the semiannual interest payment. Dec. 31. Closed the interest expense account. Year 2 Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $25,096 is combined with the semiannual interest Dec. 31. Closed the interest expense account. Year 3 amortization of discount have been recorded. (Record the redention Required: 3. Determine the carrying amount of the bonds as of December 31 , Year 2. $
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