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 $$8,080,000$ of five$-$year, $7\%$ callable bonds dated July $1,$ Year $1,$ at a market $($effective$)$ rate of $9\%,$ receiving cash of $$7,440,652.$ Interest is payable semiannually on December $31$ and June $30.$

Oct. $1.$ Borrowed $$360,000$ by issuing a $10-$year, $6\%$ installment note to Nicks Bank. The note requires annual payments of $$48,912,$ 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.

$31.$ Paid the semiannual interest on the bonds. The bond discount amortization of $$63,935$ is combined with the semiannual interest payment.

Year $2$

June $30.$ Paid the semiannual interest on the bonds. The bond discount amortization of $$63,935$ is combined with the semiannual interest payment.

Sept. $30.$ Paid the annual payment on the note, which consisted of interest of $$21,600$ and principal of $$27,312.$

Dec. $31.$ Accrued $$4,990$ 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 $$63,935$ 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 $$383,608$ 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 $$19,961$ and principal of $$28,951.$

Required:

Round all amounts to the nearest dollar.

$1.$ Journalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank.