Entries for Bonds Payable and installment Note Transactions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $3,200,000 of five-year, 8% callable bonds dated July 1, Year 1, at a market (effective) rate of 9%, receiving cash of $3,073,398 Interest is payable semiannually on December 31 and June 30. Od. 1. Borrowed $380,000 by issuing a 10-year, 8% installment note to Nicks Bank. The note requires annual payments of $57,631, with the first payment occurring on September 30, Year 2. Dec. 31. Accrued $7,600 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 band discount amortization of $12,660 is combined with the semiannual interest payment.