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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

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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 $8,750,000 of five-year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of 11%, receiving cash of $8,090,460. Interest is payable semiannually on December 31 and June 30. Dec. 31. Pald the semiannual Interest on the bonds. The bond discount amortization of $65,954 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 $65,954 is combined with the semiannual Interest payment Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $65,954 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 $395,724 after payment of interest and amortization of discount have been recorded. (Record the redemption only) Required: 1. Jourmaline the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank or enterTo". When required, round your answer to the nearest dollar Date Account Debit Credit Year 1 (July Cash 11,090,460 Date Account Debit Credit Year 1 July 1 Cash 8,090,460 659,540 Discount on bonds payable Bonds payable 8,750,000 Dec. 31-Bond Interest expense Discount on bonds payable Cash 65,954 8,090,460 X Dec. 31-Closing Income summary Interest expense Year 2 June 30 Interest expense Discount on bonds payable MI 65,954 Cash Mar 21. BAR Internet aynence Dec. 31-Bond Interest expense Discount on bonds payable 65,954 Cash HII Dec. 31.Closing Income summary Interest expense UTI Year 3 395,724 June 30 Bonds payable Loss on redemption of bonds Discount on bonds payable Cash 2. Indicate the amount of the Interest expense in () Year 1 and (b) Year 2. a. Year 1 L b. Year 2 3. Determine the carrying amount of the bonds as of December 31, Year 2

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