Entries for Bonds Payable, induding bond redemption The following transactions were completed by Montage Inc, whose fiscal year is the calendar year 2011 1. Issued $55,000,000 of 10 year 9 calable bonds dated July 1, 2011 at a market effective rate of 7%, receiving cash of $62,817,040. Interest is payable semiannually on December 31 and June 30. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment 2012 June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. 2013 June 30. Recorded the redemption of the bonds, which were called at 103. The balance in the bond premium account is $6,253,632 after payment of interest and amortization of premium have been recorded. Record the redemption only.) 1. Journalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank. When required, round amounts to the nearest dollar 2011 July 1 Dec 31 Dec. 31 2012 June 30 Dec. 31 HII 011 11 11.1 M000 01 00 2013 June 30 2. Indicate the amount of the interest expense in (a) 2011 and (b) 2012. a. 2011 b. 2012 3. Determine the carrying amount of the bonds as of December 31, 2012