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 $2,790,000 of five-year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of 11%, receiving cash of $2,579,701. Interest is payable semiannually on December 31 and June 30. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $21,030 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 $21,030 is combined with the seminnual interest payment Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $21,030 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 band discount account is $126,179 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 of When required, round your answers to the nearest dollar Date Account Debit Credit Year July 1 Cash Discount on bonds payable Bonds payable Check My Work Previous eBook Show Me How Calculator Date Account Debit Credit Year 1 July 1 Cash Discount on bonds payable Bonds payable Dec. 31-Bond Interest expense Discount on bonds payable Cash Dec. 31-Closing Income summary Interest expense Year 2 June 30 Interest expense Discount on bonds payable Cash Dec. 31-Bond Interest expense Discount on bonds payable Cash Check My Work eBook Show Me How Calculator Calculator Year 2 June 30 Interest expense Discount on bonds payable Cash Dec. 31-Bond Interest expense Discount on bonds payable Cash Dec. 31-Closing Income summary Interest expense Year 3 June 30 Bonds payable Loss on redemption of bonds Discount on bonds payable Cash 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. Year 3 Dune 30 Bonds payable LOS on redemption of bonds V Discount on bonds payable Cash M 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. a. Year 1 s b. Year 2 3. Determine the carrying amount of the bonds as of December 31, Year 2. Feedback Check My Work The gain or loss is the balancing amount needed to complete the entry and is the difference between the car A corporation usually redeems its bonds at a price different from that of the carrying amount of the bonds. Learning Objective 2 Checie My Work