PR 14 4A Entries for bonds payable and installment note transactions The following transactions were completed by Winklevoss Ine, whose fiscal year is the calendar year 2016 July 1 Issued $74,000,000 of 20 year, 11% callable bonds dated July 1, 2016, at a mar- 64 317 346 ket (effective) rate of 15%, receiving cash of $64,532,267 Interest is payable semiannually on December 31 and June 30 Oct 1 Borrowed $200,000 by issuing a six-year, 6% installment note to Nicks Bank Dec, 31 Acerued $3,000 of interest on the installment note The interest is payable on 31. Paid the semiannual interest on the bonds. The bond discount amortization of The note requires annual payments of $10,673, with the first payment occurring on September 30, 2017 the date of the next installment note payment $261,693 is combined with the semiannual interest payment 31 Closed the interest expense account 2017 June 50. Paid the semiannual interest on the bonds. The bond discount amortization Sept. 50. Paid the annual payment on the note, which consisted of interest of $12,00o Dec. 31. Accrued $2,570 of interest on the installment note. The interest is payable on 31. Paid the semiannual interest on the bonds. The bond discount amortization of 261,693 is combined with the semiannual interest payment and principal of $28,673 the date of the next installment note payment 8261,693 is combined with the semiannual interest payment $1. Closed the interest expense account 2018 June 30. 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 amor tization of discount have been recorded. (Record the redemption only Sept. 30 Paid the se cond annual payment on the note, which consisted of interest of $10,280 and principal of $30,393 Instructions I. Journalize the entries to record the fo regoing transactions. Round all amounts to the nearest dollar z. Indicate the amount of the interest expense in (a) 2016 and (b) 2017 5. Determine the carrying amount of the bonds as of December 31, 201