PR 12-4b Entries for bonds payable and installment note transactions The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: 2016 July 1. Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, 2016, at a market (effective) rate of 7%, receiving cash of $62,817,040. Interest is payable semian- nually on December 31 and June 30. Oct. 1. Borrowed $450,000 by issuing a six-year, 8% installment note to Intexicon Bank. The note requires annual payments of $97,342, with the first payment