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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

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 bond premium amortization of $532,980 is combined with the semiannual interest payment.
Year 2
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 redemption of the bonds, which were called at 103. The balance in the bond premium account is $8,527,680 after payment of interest and amortization of premium have been recorded. Record the redemption only.
Sept. 30. Paid the second annual payment on the note, which consisted of interest of $18,656 and principal of $39,749.
Required:
1. Journalize the entries to record the foregoing transactions in chronological order. If an amount box does not require an entry, leave it blank. When required, round amounts to the nearest dollar.
Date Account Debit Credit
Year 1
July 1
fill in the blank 2
fill in the blank 3
fill in the blank 5
fill in the blank 6
fill in the blank 8
fill in the blank 9
Oct. 1
fill in the blank 11
fill in the blank 12
fill in the blank 14
fill in the blank 15
Dec. 31
fill in the blank 17
fill in the blank 18
fill in the blank 20
fill in the blank 21
Dec. 31
fill in the blank 23
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fill in the blank 26
fill in the blank 27
fill in the blank 29
fill in the blank 30
Year 2
June 30
fill in the blank 32
fill in the blank 33
fill in the blank 35
fill in the blank 36
fill in the blank 38
fill in the blank 39
Sept. 30
fill in the blank 41
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fill in the blank 44
fill in the blank 45
fill in the blank 47
fill in the blank 48
fill in the blank 50
fill in the blank 51
Dec. 31
fill in the blank 53
fill in the blank 54
fill in the blank 56
fill in the blank 57
Dec. 31
fill in the blank 59
fill in the blank 60
fill in the blank 62
fill in the blank 63
fill in the blank 65
fill in the blank 66
Year 3
June 30
fill in the blank 68
fill in the blank 69
fill in the blank 71
fill in the blank 72
fill in the blank 74
fill in the blank 75
fill in the blank 77
fill in the blank 78
Sept. 30
fill in the blank 80
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fill in the blank 89
fill in the blank 90
2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2.
a. Year 1 $fill in the blank 91
b. Year 2 $fill in the blank 92
3. Determine the carrying amount of the bonds as of December 31, Year 2.
$fill in the blank 93

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