=+31. Closed the interest expense account.

2011 June 30. Paid the semiannual interest on the bonds.

Sept. 30. Paid the annual payment on the note, which consisted of interest of

$18,000 and principal of $30,671.

Dec. 31. Accrued $3,887 of interest on the installment note. The interest is payable on the date of the next installment note payment.