Entries for Bonds Payable and Installment Note Transactions The following transactions were completed by Almeda Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $75,000,000 of 10-year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of 7%, receiving cash of $85,659,600. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $270,000 by issuing a six-year, 8% installment note to Main Street Bank. The note requires annual payments of $58,405, with the first payment occurring on September 30, Year 2. Dec. 31. Accrued $5,400 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 on the bonds. The band premium amortization of $532,980 is combined with the semiannual interest Year 2 payment June 30. Paid the semiannual interest on the bonds. The bond premium amortization of $532,980 is combined with the semiannual interest payment. Sept. 30, Paid the annual payment on the note, which consisted of interest of $21,600 and principal of $36,805 Dec. 31. Accrued $4,664 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 on the bonds. The bond premium amortization of $532,980 is combined with the semiannual interest payment Year 3 June 30 Recorded the cedemetion of the bonds which were called at 103 The balance in the hond.oremum account is $8.527 680 after navment.