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The tolowing transactions were completed by Winklevoss Inc., Whose fiscal year is the calendar year: June 30 Paid the semiannual interest on the bonds. The

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The tolowing transactions were completed by Winklevoss Inc., Whose fiscal year is the calendar year: June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $176,193 is combined with the semiannual interest payment. Sept 30 Paid the annual payment on the note, which consisted of interest of $15,400 and principal of $30,755. Dec. 31 Aocrued $3,312 of interest on the instalment note. The interest is payable on the date of the next instaliment note payment. 31 Paid the semiannual interest on the bonds. The bond discount amorization of $176,193 is combined with the semiannual interest payment. Year 3 June 30 Recorded the rederpption of the bonds, which wore called at 98 . The balance in the bond discount account is $6,342,949 after payment of interest and amortization of discount have been recorded Pecord the redemption only. Sept 30 Pald the second annual payment on the note, which consisted of interest of 513.247 and principal of \$32,908. Year 3 June 30 Recorded the redemption of the bonds, which were called at 98 . The balance in the bond discount account is $6,342,949 after payment of interest and amortization of dscount have been recorded. Record the redemption only. Sept. 30 Paid the second annual payment on the note, which consisted of interest of $13,247 and principal of $32,908. Required: 1. Joumalize the entries to record the foregoing transactions. Round al amounts to the nearest dollar. Reler to the Chart or Accounts for exact wording of account tides. 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2 3. Determine the carrying amount of the bonds as of December 31 , Year 2 Entries for bonds payable and instaliment note transactions Instructions Final Questions Journal 1. Joumalze the entries to record the foregoing transactions. Round all amounts to the nearest dollar. Fefer to the Chart of Accounts for exact wording of account otites. Year 1 Entries for bonds payable and installment note transactions Entries for bonds payable and installment note transactions 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 Decomber 31, Year 2

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