the following transactions were completed by winklevoss...

Question

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

2017 June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. Sept. 30 Paid the annual payment on the note, which consisted of interest of $12,000 and principal of $28,673. Dec. 31 Accrued $2,570 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 31 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 amortization of discount have been recorded. (Record the redemption only.) Sept. 30 Paid the second annual payment on the note, which consisted of interest of $10,280 and principal of $30,393.

Required:

1. Journalize the entries to record the foregoing transactions. Round all amounts to the nearest dollar. Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles. 2. Indicate the amount of the interest expense for 2017. 3. Determine the carrying amount of the bonds as of December 31, 2017.