Entries for Bonds Payable, including bond redemption The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar years Year 1 July 1, Issued $4,400,000 of five year, 9% callable bonds dated July 1, Year 1, ot a market (effective) rate of 10%, receiving cash of $4,230,122. Interest is payable semiannually on December 31 and June 30 Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $16,988 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 $16,988 is combined with the semiannual interest payment. Dec 31. Paid the semiannual interest on the bonds. The bond discount amortization of $16,998 is combined with the semiannual interest payment Dec 31. Closed the interest expense account 1 Year June 30. Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $101,926 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 To When required, round your answers to the nearest dollar Debit Date Account Credit Year: July 1 Cash Discount on bonds payable Bonds payable 4,230,122 169,878 0 0 4,400,000 Debit Credit Date Account Year 1 0 July 1 Cash 4,230,122 169,878 0 Discount on bonds payable o 4,400,000 Bonds payable 0 Dec. 31-Bond Interest expense 0 16,988 Discount on bonds payable 0 Cash Dec. 31-Closing Income summary Interest expense Year 2 0 June 30 Interest expense 16,988 Discount on bonds payable Cash 0 Dec. 31-Bond Interest expense 0 Discount on bonds payable 0 Cash Dec. 31-Closing Income summary Interest expense Year 3 June 30 0 Bonds payable Loss on redemption of bonds Discount on bonds payable 0 101,926 Cash 0 2. Indicate the amount of the Interest expense in (a) Year 1 and (b) Year 2 a. Year 1 1 b. Year 2 3. Determine the carrying amount of the bonds as of December 31, Year 2