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Instructions Journal The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: PAGE 10 20Y1 JOURNAL ACCOUNTING EQUATION July 1 DESCRIPTION POST. REF. DENT CREDIT ASSETS LIABILITIES EQUITY 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. Paid the semiannual interest on the bonds. The bond discount amortization of $281,693 is combined with the semiannual interest payment. Dec 31 20Y2 June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. Paid the semiannual interest on the bonds. The bond discount amortization of $281,693 is combined with the semiannual interest payment. Dec 31 1b. Joumalize the entries to record the 2012 transactions. Refer to the Chart of Accounts for exact wording of account titles. Round all amounts to the nearest dollar 2013 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.) PAGE 11 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Required: 1. Joumalize the entries to record the transactions. Round all amounts to the nearest doller. Refer to the Chart of Accounts for exact wording of account titles. 2. Indicate the amount of the interest expense in (e) 20Y1 and (b) 2012. 3. Determine the carrying amount of the bonds as of December 31, 20Y2. 10. Joumalize the entries to record the 2013 transections. Refer to the Chart of Accounts for exact wording of account titles. Round all amounts to the nearest dollar PAGE 12 JOURNAL ACCOUNTING EQUATION DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

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