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 $$4,180,000$ of five$-$year, $7\%$ callable bonds dated July $1,$ Year $1,$ at a market

$($effective$)$ rate of $9\%,$ receiving cash of $$3,849,249.$ Interest is payable semiannually

on December $31$ and June $30.$

Oct. $1.$ Borrowed $$200,000$ by issuing a $10-$year, $6\%$ installment note to Nicks Bank. The note

requires annual payments of $$27,174,$ with the first payment occurring on September

$30,$ Year $2.$

Dec. $31.$ Accrued $$3,000$ of interest on the installment note. The interest is payable on the date

of the next installment note payment.

Paid the semiannual interest on the bonds. The bond discount amortization of $$33,075$

is combined with the semiannual interest payment.

Year $2$

June $30.$ Paid the semiannual interest on the bonds. The bond discount amortization of $$33,075$

is combined with the semiannual interest payment.

Sept. $30.$ Paid the annual payment on the note, which consisted of interest of $$12,000$ and

principal of $$15,174.$

Dec. $31.$ Accrued $$2,772$ of interest on the installment note. The interest is payable on the date

of the next installment note payment.

Paid the semiannual interest on the bonds. The bond discount amortization of $$33,075$

is combined with the semiannual interest payment.

Year $3$

June $30.$ Recorded the redemption of the bonds, which were called at $98.$ The balance in the

bond discount account is $$198,451$ after payment of interest and amortization of

discount have been recorded. Record the redemption only.

Sept. $30.$ Paid the second annual payment on the note, which consisted of interest of $$11,090$

and principal of $$16,084.$

Required:

Round all amounts to the nearest dollar.