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The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 20Y1 July 1 Issued $74,000,000 of 20 -year, 11% callable

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The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 20Y1 July 1 Issued $74,000,000 of 20 -year, 11% callable bonds dated July 1,20 Y 1 , 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 rocorded. (Record the redemption only) Required: 1. Joumalizo the entries to record the transactions. 2. Indicate the amount of the interest expense in (a) 20Y and (b) 20Y2 The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 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: 1. Joumalize the entries to record the transactions. 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2. 1a. Journalize the entries to record the 20y1 transactions. 16. Journalize the entries to record the 20 Y2 transactions. Generaldoumat instructions 10. Joumalize the entries to record the 20 Y3 transactions. 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2. Additional Instruction 20Y1:20Y2: 3. Determine the carrying amount of the bonds as of December 31,20Y2

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