Entries for Echds Poyable and Installment Note Transactions: The following transactions were completed by Wakievoss thc., whose fiscal vear is the calendar wear: Year 1 July 1. Issued $7,190,000 of fvereag, 10% callable bonds dated July 1, Year 1, at a market (etfective) rate of 12\%, receiving cash of $6,660,809 : Interest is payable semiannually on December 31 and kune 30 Oct: 1. Borrowed $360,000 by issuing a 10-year, 8% instaliment note to Nicks llank. The note requires annual payments of $57,631, with the first payment occurning on September 30 , Year 2. Dec. 31. Accrued 57,600 of interest on the instaliment nete. The interest is payable en the date of the next instaliment note poyment. 31. Pald the semannual interest on the bonds. The bond dscount amortization of 552,919 is combired with the semiannual interest Parment: Vear 2 June 30. Paid the semianual interest on the bonds. The bond discount amortization of $52,919 is combined wah the semlannual intecest payment. Sept. 10. Paid the arnual payment on the note, which consisted of interest of $30,400 and princlpal of $27,231. Dec. 31. Acorved 37.055 of interest on the instaliment obte. The interest is pavable on the date of the neat instaliment note payment. 31. Pand the semiannusl interest on the bonds. The bond discount amortization of $52.919 is combined with the semianuual intecest parment: Vest 3 interest and amortization of oiscount have been recorbed. Fecord the redemption only Sept, 30 . Paid the second anhual payment on the note, which consisted of intereut of $28,222 and principal of $29,409 Requited: 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2