Instructions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 20Y1 July Dec. 20Y2 1 31 June 30 Dec. 31 20Y3 June 30 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 20Y1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $9,420,961 after payment of interest and amortization of discount have been recorded. (Record the redemption only.) Required: 1. Journalize the entries to record the transactions. 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 2012. 3. Determine the carrying amount of the bonds as of December 31, 2012. Th General Journal 1a. Journalize the entries to record the 20Y1 transactions. General Journal Instructions DATE DESCRIPTION 1 2 3 4 5 6 1b. Journalize the entries to record the 2012 transactions. General Journal Instructions JOURNAL PAGE 10 ACCOUNTING EQUATION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1b. Journalize the entries to record the 20Y2 transactions. General Journal Instructions DATE DESCRIPTION 1 2 3 4 5 6 1c. Journalize the entries to record the 20Y3 transactions. General Journal Instructions JOURNAL PAGE 11 ACCOUNTING EQUATION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1c. Journalize the entries to record the 20Y3 transactions. General Journal Instructions 1 2 3 4 DATE DESCRIPTION JOURNAL PAGE 12 ACCOUNTING EQUATION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Final Questions 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 2012. Additional Instruction 20Y1: $ 20Y2: $ 3. Determine the carrying amount of the bonds as of December 31, 2012. $