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Entries for tonds Payable, including bond redemption The following transactions were completed by Winklevost Inc, whose focal year is the calendar year Year 1 July

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Entries for tonds Payable, including bond redemption The following transactions were completed by Winklevost Inc, whose focal year is the calendar year Year 1 July 1 Issued $1,070,000 or five-year, 7% calable bonds dated July 1, Year 1, ata marunt (effective) rate of receiving cash of $1,026,607. Interestis payable semiannually on December 31 and June 30, Dec. 31. Paid the semiannual interest on the bonds. The hond discourt amortization of 34,240 ls combined with the mi interest poyment Dec. 31. Closed the interest expense account Year 2 June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $4,340 is combined with the semiannual interest payment Dec. 31. Poid the semiannual interest on the bonds. The bond discount amortiration of $4,340 ms combined with the comitat interest paymem. Dec. 31. Closed the interest expense account Year June 30. Recorded the redemption of the bands, which were called at 98. The balance in the bone discount account * 326,0% after payment of interest and amortization of discount have been recorded. (Record the redemption only) Required: 1. Soumalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it bank or enteros. When required, round your answers to the nearest dollar Account Debit Credit Date Year! Cash 1,026,607 July 1 Discount on bonds payable Bonds payable Dec. 31-Bond Interest expense eBook Show Me How Interest expense Dec. 31-Bond Discount on bonds payable I III Cash Dec. 31-Closing Income summary Interest expense Year 2 June 30 Interest expense Discount on bonds payable Cash Dec. 31-Bond Interest expense Interest expense X Interest expense X Cash X Dec 31-Closing Discount on bonds payable X Year 3 June 30 Bonds payable Loss on redemption of bonds Discount on bonds payable Dec 31-Closing Cash X Discount on bonds payable Year 3 June 30 Bonds payable Loss on redemption of bands Discount on bonds payable Cash 2. Indicate the amount of the Interest expense in (a) Year 1 and (b) Year 2

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