PR 14-4A Entries for Bonds Payable and Installment Note Transactions Obj. 3, 4 The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 1. Journalize the entries to record the foregoing transactions. Round all amounts to the nearest dollar. 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. Answer: Check Figure: $64,317,346 Year 3 \begin{tabular}{|l|l|l|} \hline June & 30. & Recordedtheredemptionofthebonds,whichwerecalledat98.Thebalanceinthebonddiscountaccountis$9,420,961afterpaymentofinterestandamortizationofdiscounthavebeenrecorded.Recordtheredemptiononly. \\ \hline Sept. & 30. & Paidthesecondannualpaymentonthenote,whichconsistedofinterestof$10,280andprincipalof$30,393. \\ \hline \end{tabular}