Pinder Co produces and sells high-quality video equipment. To finance its operations, Pinder Co. issued $25,000,000 of five-year, bonds, with interest payable mannellyt a market (effective interest rate of Determine the present value of the bande payable, using the present Value Tables in this and Exhibit 10. Round to the nearest dollar. The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $3,730,000 of five-year, 8% callable bonds dated July 1, Year 1, at a market (effective) rate of 10%, receiving cash of $3,441,979. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $290,000 by issuing a 10-year, 7% installment note to Nicks Bank. The note requires annual payments of $41,289, with the first payment occurring on September 30, Year 2. Dec. 31. Accrued $5,075 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31. Pald the semlannual interest on the bonds. The bond discount amortization of $28,802 is combined with the semiannual Interest payment Year 2 June 30. Pald the semiannual interest on the bonds. The bond discount amortization of $28,802 is combined with the semiannual mortization interest payment. Sept. 30. Pald the annual payment on the note, which consisted of interest of $20,300 and principal of $20,989, Dec. 31. Accrued $4,708 of interest on the installment note. The interest is payable on the date of the next Installment note payment 31. Paid the semiannual Interest on the bonds. The bond discount amortization of $28,802 is combined with the semiannual Interest payment. Year 3 June 30. Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $172,813 after Sept. 30. Pald the second annual payment on the note, which consisted of Interest of $18,831 and principal of $22,458. Required: Round all amounts to the nearest dollar. 1. Journalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank. Date Account Debit Credit Year 1 July 1 loct. I Dec. 31.Note Dec. 31-Bond Year 2 June 30 III III Sept. 30 M Dec. 31-Note Dec. 31-Bond Year 3 June 30 III Sept. 30 1 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 $