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 $7,460,000 of five-year, 8% callable bonds dated July 1, Year 1, at a market (effective) rate of 10%, receiving cash of $6,883,958. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $290,000 by issuing a 10-year, 7% installment note to Nicks Bank. The note requires annual payments of $41,289, with the first payment occurring on September 30, Year 2. Dec. 31. Accrued $5,075 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 bond discount amortization of $57,604 is combined with the semiannual interest > Year 2 payment. June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $57,604 is combined with the semiannual interest payment. Sept. 30. Paid the annual payment on the note, which consisted of interest of $20,300 and principal of $20,909. Dec. 31. Accrued $4,708 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 bond discount amortization of $57,604 is combined with the semiannual interest payment. Year 3