Question

I'm using cengage for this problem in my online Managerial Accounting class ACG 2071 Lab and i'm having trouble answering question 2 and 3. I believe í've completed question 1 which is the journalizing but I can't seem to find out where am I supposed to post the answers to questions 2 and 3.  

I see this on the assignment test description."Display the general ledger reports for the Interest Expense account and indicate the amount of interest expense in (a) 2018 and (b) 2019." but I don't know where the general ledger for the expense account is. I dont believe its the same journal that I used to make the entries for question 1.

Entries for Bonds Payable, including bond redemption

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

Year 1

July 1. Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of 7%, receiving cash of $62,817,040. Interest is payable semiannually on December 31 and June 30.

Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment.

31. Closed the interest expense account.

Year 2

June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment.

Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment.

31. Closed the interest expense account.

Year 3

June 30. Recorded the redemption of the bonds, which were called at 103. The balance in the bond premium account is $6,253,632 after payment of interest and amortization of premium have been recorded. (Record the redemption only.)

1. Journalize the entries to record the foregoing transactions.

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 1

1.

Year 1
July 1	Cash		62,817,040
	Bonds Payable				55,000,000
	Premium on Bonds Payable				7,817,040
Dec. 31	Interest Expense		9,000
	Interest Payable				9,000
Dec. 31	Cash		2,084,148
	Premium on Bonds Payable		390,852
	Interest Expense				2,475,000
Dec. 31	Income Summary		2,093,148
	Interest Expense				2,093,148
Year 2
June 30	Interest Expense		2,084,148
	Premium on Bonds Payable		390,852
	Cash				2,475,000
Dec. 31	Interest Expense		7,773
	Interest Payable				7,773
Dec. 31	Interest Expense		2,084,148
	Premium on Bonds Payable		390,852
	Cash				2,475,000
Dec. 31	Income Summary		4,203,069
	Interest Expense				4,203,069
Year 3
June 30	Bonds Payable		55,000,000
	Premium on Bonds Payable		6,253,632
	Cash				56,650,000
	Gain on Redemption of Bonds				4,603,632

2.

a.	Year 1 interest expense:		$ 2,093,148
b.	Year 2 interest expense:		$ 4,203,069

3.

Initial carrying amount of bonds	$ 62,817,040
Premium amortized on December 31, Year 1	(390,852)
Premium amortized on June 30, Year 2	(390,852)
Premium amortized on December 31, Year 2	(390,852)
Carrying amount of bonds, December 31, Year 2	$ 61,644,484