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Question: the following transactions were completed by winklevoss inc whose fiscal...

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The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:

Year 1

July 1 Issued $71,100,000 of 20-year, 12% callable bonds dated

July 1, Year 1, at a market (effective) rate of 14%, receiving cash of $61,621,133. Interest is payable semiannually on December 31 and June 30.

Oct. 1 Borrowed $250,000 by issuing a six-year, 5% installment note to Nicks Bank. The note requires annual payments of $49,254, with the first payment occurring on September 30, Year 2.

Dec. 31 Accrued $3,125 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $236,972 is combined with the semiannual interest payment.

Year 2

June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $236,972 is combined with the semiannual interest payment. Sept. 30 Paid the annual payment on the note, which consisted of interest of $12,500 and principal of $36,754. Dec. 31 Accrued $2,666 of interest on the installment note. The interest is payable on the date of the next installment note payment.

31 Paid the semiannual interest on the bonds. The bond discount amortization of $236,972 is combined with the semiannual interest payment.

Year 3

June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $8,530,979 after payment of interest and amortization of discount have been recorded. Record the redemption only. Sept.

30 Paid the second annual payment on the note, which consisted of interest of $10,662 and principal of $38,592.

Required:

1. Journalize the entries to record the foregoing transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.

2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. (There is supposed to be an answer for A and one for B).

3. Determine the carrying amount of the bonds as of December 31, Year 2. (Only one answer).

Year 1 has 10 journal entries.

Year 2 has 12 journal entries.

Year 3 has 8 journal entries.  

Please do not answer or respond to this question if you aren't going to answer it correctly. Every question I have asked this month has been answered incorrectly.

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