You are an accounting intern working for Spring Fit Corporation. You have recently been assigned to help one of the accountants who is doing an internal audit of the business. You will be assisting with a review of the payables issued by Spring Fit Corporation. Your first task is to review the previous year's journal entries, shown below.
Journal Entries, Year 1

Bonds Payable
Shaded cells have feedback.
Review the journal entries on the Spring Fit Corporation panel, then answer the questions below.
1. Assuming that no bonds had been issued prior to Year 1, how many different bonds appear in the journal entries for this year?
2. Which entry shows bonds issued at a contract rate lower than the market rate of interest? Choose the date. Jul. 1
3. How much interest was paid during the year on the bonds in (2) above?
4. What is the carrying amount of the bonds in (2) above at the end of the year?

DATE DESCRIPTION POST. REF. DEBIT CREDIT Jan. 1 Cash 1,004,720.00 Premium on Bonds Payable 58,720.00 2 3 Bonds Payable 946,000.00 4 Jun. 30 Interest Expense 18,349.00 Premium on Bonds Payable 2,936.00 Cash 21,285.00 Jul. 1 Cash 1,729,164.00 Discount on Bonds Payable 8. 70,836.00 Bonds Payable 1,800,000.00 10 Oct. 1 Cash 1,500,000.00 Notes Payable 11 1,500,000.00 12 Dec. 31 Interest Expense 18,349.00 Premium on Bonds Payable 13 2,936.00 Cash 14 21,285.00 31 Interest Expense 15 22,500.00 16 Interest Payable 22,500.00 31 Interest Expense 17 37,403.00 18 Discount on Bonds Payable 5,903.00 19 Cash 31,500.00 31 Income Summary 20 96,601.00 Interest Expense 96,601.00 21