July $1$ issued $$32,300,000$ of $20$ yeat, $9\%$ callable bonds dated July $1,$ Year $1,$ at a market $($effective$)$ rate of $11\%,$ receiving cash of $$27,116,993.$ Interest is payabie semiannually on December $31$ and June $30.$

Oct $1$ Borrowed $$430,000$ by issuing a six$-$year, $4\%$ instailment note to Nicks Bank. The note requires annual payments of $$82,028,$ with the first payment occurring on September $30,$ Year $2.$

Dec. $31$ Accrued $$4,300$ of interest on the instaliment note. The interest is payabie on the date of the next installment note payment.

$31$ Paid the semiannual interest on the bonds. The bond discount amortization of $$129\mathrm{.}575$ is combined with the semiannual interest payment.

Year $2$

June $30$ Paid the semiannual interest on the bonds. The bond discount amortization of $$129575$ is combined with the semiannual interest payment.

Sept. $30$ Paid the annual payment on the note, which consisted of interest or $$17,200$ and principal of $$64,828.$

Dec $31$ Accrued $$3,652$ of interest on the installment note. The interest is payable on the date of the next instaitment note payment.

$31$ Paid the semiannual interest on the bonds. The bond discount amoitization of $$129,575$ is cambined with the semiannual interest payment. year $3$ june $30$ record