Entries for tonds Payable and Installment Note Transactions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1 Tuly 1. Issued $1,890,000 of ffve-year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of 11%, receiving cash of $1,747,539. Interest is parable semiannually on December 31 and June 30 . Oct. 1. Borrowed $430,000 by issuing a 10 year, 6% installment note to Nicks Bank. The note requ res annual payments of $58,423, with the first parment occurring on September 30 , Year 2. Dec. 31. Accrued $6,450 of interest on the installment note. The interest is payabie on the date of the next instaliment note payment. 31. Paid the semiannual interest on the bonds. The bond discount amortizotion of $14,246 is combined with the semiannual interest payment. Year 2 June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $14,246 is combined with the semiannual interest parment. Sept. 30. Paid the annval poyment on the note, which consisted of interest of $25,800 and principal of $32,623. Dec 31. Accrued 55,961 of interest on the instaliment note. The interest is payable on the date of the next instaliment note payment. 31. Paid the semlannual interest on the bonds, The bond discount amortization of $14,246 is combined with the semiannual interest parment. Year 3 June 30. Recorded the redemption of the bonds, which were called at 98 . The balance in the bond discount account is $85,477 after payment of interest and amertization of discount have been recorded. Record the redemption only. Sept, 30. Paid the second annual payment on the note, which consisted of interest of $23,843 and principal of $34,580 Required: 1. Journalize the entries to record the foregoing transactions, If an amount box does not require an entry, leave it blank. sect 30. 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. a. Year 1 i b. Vear2, 3. Detemine the carring amount of the bonds as of December 31, Year 2