The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: $1$a$.$ Journalize the entries to record the $20Y1$ transactions.

General Journal Instructions

JOURNAL

$1$b$.$ Journalize the entries to record the $20Y2$ transactions.

General Journal Instructions

JOURNAL

$1$c$.$ Journalize the entries to record the $20Y3$ transactions. $1$c$.$ Journalize the entries to record the $20Y3$ transactions.

General Journal Instructions Indicate the amount of the interest expense in $($a$)20Y1$ and $($b$)20Y2.$

Additional Instruction

$20$Y$1$:

$20$Y$2$:

Determine the carrying amount of the bonds as of December $31,20Y2.$

$20Y1$

July $1$ Issued $$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. $31$ Paid the semiannual interest on the bonds. The bond discount amortization of $$261,693$ is combined

with the semiannual interest payment.

$20Y2$

June $30$ Paid the semiannual interest on the bonds. The bond discount amortization of $$261,693$ is combined

with the semiannual interest payment.

Dec. $31$ Paid the semiannual interest on the bonds. The bond discount amortization of $$261,693$ is combined

with the semiannual interest payment.

$20Y3$

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 amortization of discount have been recorded.

$($Record the redemption only.$)$

Required:

Journalize the entries to record the transactions.

Indicate the amount of the interest expense in $($a$)20Y1$ and $($b$)20Y2.$

Determine the carrying amount of the bonds as of December $31,20Y2.$