Jan. 1 Jan. 1 The company issued 100,000 shares of $9 par value common stock to LJ Porter in exchange for three things: $200,000 in cash, a building valued at $810,000 and land valued at $240,000. The company prepaid $96,000 in cash for a 24 month insurance policy. The company borrowed $170,000 on a 3-year, 5% installment Feb. 1 note payable. The terms of the note require the company to make equal payments of $62,425 each December 31 for 3 years. Mar. 1 Jul. 1 Dec. 31 Dec. 31 The company provided engine repair services to a customer and received $320,000 in cash. The company issued 7% 5-year bonds with par value of $500,000. The bonds were issued at 105% (a premium). Interest payments are due twice each year on June 30 and December 31. The company paid the first interest payment on the $500,000 bond issues on July 1. The company paid $62,425 for its annual installment on the installment note from above. The company must calculate and record both the principal portion and the interest portion for this payment.