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

20Y1July1Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 20Y1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30.Dec.31Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.20Y2June30Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.Dec.31Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.20Y3June30Recorded 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 amortization of discount have been recorded. (Record the redemption only.)Required:

1.Journalize the entries to record the transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.2.Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2.3.Determine the carrying amount of the bonds as of December 31, 20Y2.