PR 11-3B Entries for bonds payable, including bond redemption The following transactions were complet year: Year 1 July Obj. 2 3.561,644,484 The following transactions were completed by Montague Inc., whose fiscal year is the calendar 3. 561,644,484 1. Issued $55,000,000 of 10-year 9% callable bonds dated July 1,Year 1, at a market (effective) rate of ME HOW EXCEL TEMPLATE 796, eceiving cash of $62,817,040. Interest is payable semiannually on December 31 and June 30. Dec. 31. Paid th e semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. Closed the interest expense account. 31. GENERAL LEDGER Year 2 June 30. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. Closed the interest expense account. 31. Year 3 Recorded the redemption of the bonds, which were called at 103. The balance in the bond premium account is $6,253,632 after payment of interest and amortization of premium have been recorded (Record the redemption only.) June 30. Instructions 1. Journalize the entries to record the foregoing transactions. 2. Indicate the amount of the interest expense in (A) Year 1 and (B) Year 2 3. Determine the carrying amount of the bonds as of December 31, Year 2