Entries for bonds payable, including bond redemption Obj. 2 The following transactions were completed by Winklevoss...

  

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Entries for bonds payable, including bond redemption Obj. 2 The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. July 1. Dec. 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. Instructions 1. Journalize the entries to record the transactions. (Round all amounts to the nearest dollar.) 2. Indicate the amount of the interest expense in (A) Year Entries for bonds payable, including bond redemption Obj. 2 The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. July 1. Dec. 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. Instructions 1. Journalize the entries to record the transactions. (Round all amounts to the nearest dollar.) 2. Indicate the amount of the interest expense in (A) Year

Answer rating: 100% (QA)

Solution Debit Credit 1st year Jul01 Cash 63532267 Discount on Bonds Payable 10467733 Bonds Payable ... View the full answer