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 $3,690,000 of five-year, 10% callable bonds dated July 1, Year 1, at a market (effective) rate of 11%, receiving cash of $3,5 payable semiannually on December 31 and June 30. Dec. 31. Paid the semiannual Interest on the bonds. The bond discount amortization of $13,907 is combined with the semiannual interest pa Dec. 31. Closed the interest expense account. Year 2 June 30. Pald the semiannual interest on the bonds. The bond discount amortization of $13,907 is combined with the semiannual interest pas Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $13,907 is combined with the semiannual interest pay 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 $83,441 after payment 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 "o". When required, round your answers to the nearest dollar. Date Account Debit Credit Year 1 July 1 Payable, including bond redemption sactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: $3,690,000 of five-year, 10% callable bonds dated July 1, Year 1, at a market (effective) rate of 11%, receiving cash of $3,550,931. Interest is semiannually on December 31 and June 30. semiannual Interest on the bonds. The bond discount amortization of $13,907 is combined with the semiannual interest payment. he Interest expense account. semiannual interest on the bonds. The bond discount amortization of $13,907 is combined with the semiannual Interest payment semiannual interest on the bonds. The bond discount amortization of $13,907 is combined with the semiannual interest payment Interest expense account the redemption of the bonds, which were called at 98. The balance in the bond discount account is $83,441 after payment of Interest and tion of discount have been recorded. (Record the redemption only.) entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank or enter "O". When our answers to the nearest dollar Account Debit Credit Date Account Year 1 Debit Credit July 1 Dec. 31-Bond TINI Dec. 31-Closing Year 2 June 30 III Dec. 31-Bond Dec. 31-Bond Dec. 31-Closing Year 3 June 30 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. a. Year 1 b. Year 2 $ 3. Determine the carrying amount of the bonds as of December 31, Year 2
