2010July 1. Issued $10000000 of 10-year 15% callable bonds dated july1 2010 at

2010July
1. Issued $10000000 of 10-year 15% callable bonds dated july1 2010
at an effective of 11 receiving cash of $12390085. Interest is
payable semi annually on December 31 and June 30. Oct. 1. Borrowed
$225000 as a six year 8% installment note from Titan Bank. The note
requires annual payments of $48671 with the first payment occurring on
September 30 2011. Dec. 31. Accrued $4500of interest on the
installment note. The interest is payable on the date of the next
installment note payment. Dec. 31. Paid the semiannual interest of the
bond. Dec. 31. Recorded bond premium amortization of $119504 which was
determined using the straight line method. Dec. 31. Closed the interest
expense account. 2011 June 30. Paid the semiannual interest of the
bond. Sept. 30. Paid the annual payment of the note which consist of
interest of $18000 and principal of $30 671. Dec. 31. Accrued $3887
of interest on the installment note. The interest is payable on the date
of the next installment note payment. Dec. 31. Paid the semiannual
interest of the bond. Dec. 31. Recorded bond premium amortization of
$239008 which was determined using the straight line method. Dec. 31.
Closed the interest expense account. 2012 June 30. Recorded the
redemption of the bonds which were called at1015. the balance in the
bond premium account is $1912069 after payment of interest and
amortization of premium have been recorded.(Record the redemption only)
Sept. 30. Paid the second annual payment on the note which consist of
interest of $15546 and principal of $33125 Instructions:1. Journalize the entries to record the foregoing transactions.2. Indicate the amount of the interest expense in 2010 and 20113. Determine the carrying amount of the bonds as of December 31 2011.