The following transactions were completed by Winklevossy Whose iscal year is the calendar years Year 1 July 1 Issued $3,770,000 of five year, 6 callable bonds dated July 1, Year 1, at a market effective) rate of 7 , receiving cash of $3,613,232 Interest is payable semiannually on December 31 and June 30 Oct 1 Borrowed $290,000 by Issuing a 10 year, 7 installment note to Nicks Bank The note requires annual payments of $41,289, with the first payment occurring on September 30, Year 2 Dec 31 Accrued $5,075 of interest on the installment note The interest is payable on the date of the next installment note payment 31 Poid the semiannual interest on the bonds The band discount amortization of $15,677 is combined with the semiannual interest payment Year 2 June 30 Paid the semiannual interest on the bonds The bond discount amortization of $15,677 is combined with the semiannual interest payment Sept 30 Paid the annual payment on the note, which consisted of interest of $20,300 and principal of $20,989 Dec 31 Accrued $4,708 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 $15,677 is combined with the semiannual interest payment Year 3 June 30 Recorded the redemption of the bonds, which were called at 98 The balance in the band discount account is $94,060 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 $18,831 and principal of $22,458 Required Round all amounts to the nearest dollar 1 Journalize the entries to record the foregoing transactions If an amount box does not require an entry, leave it blank Account Debit Cre Date Year 1 July 1 Oct 1 III LIHTOI Dec 31 Note III DI DI Dec 31 Bond 2 Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2 a Year 1 b Year 2 $ 3 Determine the carrying amount of the bonds as of December 31, Year 2

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The following transactions were completed by Winklevossy Whose iscal year is the calendar years Year 1 July 1  Issued $3,770,000 of five year, 6  callable bonds dated July 1, Year 1, at a market effective) rate of 7 , receiving cash of $3,613,232 Interest is payable semiannually on December 31 and June 30  Oct  1  Borrowed $290,000 by Issuing a 10 year, 7  installment note to Nicks Bank  The note requires annual payments of $41,289, with the first payment occurring on September 30, Year 2  Dec  31  Accrued $5,075 of interest on the installment note  The interest is payable on the date of the next installment note payment  31  Poid the semiannual interest on the bonds  The band discount amortization of $15,677 is combined with the semiannual interest payment  Year 2 June 30 Paid the semiannual interest on the bonds  The bond discount amortization of $15,677 is combined with the semiannual interest payment Sept  30  Paid the annual payment on the note, which consisted of interest of $20,300 and principal of $20,989 Dec  31  Accrued $4,708 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 $15,677 is combined with the semiannual interest payment Year 3 June 30  Recorded the redemption of the bonds, which were called at 98  The balance in the band discount account is $94,060 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 $18,831 and principal of $22,458  Required  Round all amounts to the nearest dollar 1  Journalize the entries to record the foregoing transactions  If an amount box does not require an entry, leave it blank  Account Debit Cre Date Year 1 July 1 Oct  1 III LIHTOI Dec 31 Note III DI DI Dec  31 Bond 2  Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2  a  Year 1 b  Year 2 $ 3  Determine the carrying amount of the bonds as of December 31, Year 2

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The following transactions were completed by Winklevossy Whose iscal year is the calendar years Year 1 July 1. Issued $3,770,000 of five year, 6% callable

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