The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:

Year 1
July 1.	Issued $2,180,000 of five-year, 8% callable bonds dated July 1, Year 1, at a market (effective) rate of 10%, receiving cash of $2,011,666. Interest is payable semiannually on December 31 and June 30.
Dec. 31.	Paid the semiannual interest on the bonds. The bond discount amortization of $16,834 is combined with the semiannual interest payment.
Dec. 31.	Closed the interest expense account.
Year 2
June 30.	Paid the semiannual interest on the bonds. The bond discount amortization of $16,834 is combined with the semiannual interest payment.
Dec. 31.	Paid the semiannual interest on the bonds. The bond discount amortization of $16,834 is combined with the semiannual interest payment.
Dec. 31.	Closed the interest expense account.
Year 3
June 30.	Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $101,000 after payment of interest and amortization of discount have been recorded. (Record the redemption only.)

Required:

1. Journalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank or enter "0". When required, round your answers to the nearest dollar.

Date	Account	Debit	Credit
Year 1
July 1		fill in the blank 2	fill in the blank 3
		fill in the blank 5	fill in the blank 6
		fill in the blank 8	fill in the blank 9
Dec. 31-Bond		fill in the blank 11	fill in the blank 12
		fill in the blank 14	fill in the blank 15
		fill in the blank 17	fill in the blank 18
Dec. 31-Closing		fill in the blank 20
			fill in the blank 22
Year 2
June 30		fill in the blank 24	fill in the blank 25
		fill in the blank 27	fill in the blank 28
		fill in the blank 30	fill in the blank 31
Dec. 31-Bond		fill in the blank 33	fill in the blank 34
		fill in the blank 36	fill in the blank 37
		fill in the blank 39	fill in the blank 40
Dec. 31-Closing		fill in the blank 42
			fill in the blank 44
Year 3
June 30		fill in the blank 46	fill in the blank 47
		fill in the blank 49	fill in the blank 50
		fill in the blank 52	fill in the blank 53
		fill in the blank 55	fill in the blank 56

2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2.

a. Year 1 $fill in the blank 57 b. Year 2 $fill in the blank 58

3. Determine the carrying amount of the bonds as of December 31, Year 2. $fill in the blank 59