June 30. Recorded the redemption of the bonds, which were called at 98 . The balance in the bond discount account is 5205,853 after payment of interest and amoctization of discount have been recorded, feccord the redempeion enly. Sepk, 30. Paid the second annual paryment on the note, which consisted of interest of \$19,961 and principal of $29,951. Requiredt Round all amounts to the nearest dollar. Entries for Bonds Payable and Installiment Mote Transactions The following transictions were completed by Winklevoss inc., whose fiscal vear is the calendar rear: Year 1 July 1. Issued $,460,000 of five-year, 7% calisble bonds dated July 1, Yeor 1 , at a market (effective) rate of a\%, receving cash of sa, 116,911. Interest is payable semiannuaty on December 31 and June 30. Oct. 1. Borrowed: $360,000 by issuing a 10 vear, 6% instalment note to Nicks Bank, The note requires annual payments of $45,912, with the first poyment occurning on September 30 , Year 2. Dec. 31. Accrued $5,400 of interest on the instaliment note. The interest is payable on the dote of the neat instaliment note parment 3i. Paid the semisnnual interest on the bonds. The bond olscount amortization of 534,309 is combined with the semiannual interest payment. Year 2 June 30. Paid the semiannual interest on the bonds. The bond siscount amortization of 534,309 is combined with the semiannuat interest pavment. Sept 30. Paid the annuat payment on the note, which consisted of interest of $21,600 and principat of $27,312. Dec 31. Accrued $4,990 of interest on the instaliment note. The interest is payable on the date of the next installinent note payment. 31. Paid the semiannual interest on the bonds. The bond discoumt amortiration of 534,309 is combined with the semiannual interest. payment: Year 3 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. a. Year 1 b. Year 2 \$ 3. Determine the carrying amount of the bonds as of December 31 , Year 2