PR 11-3A Entries for Bonds Payable, Including Bond Redemption Obj. 2 The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 20Y1 July Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 1. Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 20Y1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. 20Y2 June 30. 2013 June Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. Instructions Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 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.) 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) 20Y1 and (b) 20Y2. 3. Determine the carrying amount of the bonds as of December 31, 20Y2. Answer Check Figure: $64,317,346

Entries for Bonds Payable, Including Bond Redemption bj. 2 The following transactions were completed by Winklevoss Inc., whose fiscal year is ce calendar year: 20Y1 July 1. Issued $74,000,000 of 20 -year, 11% callable bonds dated July 1 . 20Y1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30 . Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 20Y2 June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 20r3 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.) structions urnalize the entries to record the transactions. Round all amounts to the nearest dollar. dicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2. etermine the carrying amount of the bonds as of December 31, 20 Y2