year 1
July 1.	Issued $2,710,000 of five-year, 8% callable bonds dated July 1, Year 1, at a market (effective) rate of 10%, receiving cash of $2,500,741. Interest is payable semiannually on December 31 and June 30.
Oct. 1.	Borrowed $380,000 as a 10-year, 8% installment note from Intexicon Bank. The note requires annual payments of $57,631, with the first payment occurring on September 30, Year 2.
Dec. 31.	Accrued $7,600 of interest on the installment note. The interest is payable on the date of the next installment note payment.
Dec. 31.	Paid the semiannual interest on the bonds. The bond discount amortization of $20,926 is combined with the semiannual interest payment.
Year 2
June 30.	Paid the semiannual interest on the bonds. The bond discount amortization of $20,926 is combined with the semiannual interest payment.
Sept. 30.	Paid the annual payment on the note, which consisted of interest of $30,400 and principal of $27,231.
Dec. 31.	Accrued $7,055 of interest on the installment note. The interest is payable on the date of the next installment note payment.
Dec. 31.	Paid the semiannual interest on the bonds. The bond discount amortization of $20,926 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 $125,555 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 $28,222 and principal of $29,409.

Required:

1. Journalize the entries to record the foregoing transactions. For compound transactions, if an amount box does not require an entry, leave it blank or enter "0". When required, round your answers to the nearest dollar.?

Entries for Bonds Payable and Installment Note Transactions The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: Year 1 issued $2,710,000 of five-year, 8% callable bonds dated July 1, Year 1, at a market (effective) rate of 10%, receiving cash of $2,500,741. Interest is payable semiannually on December 31 and June 30. Borrowed $380,000 as a 10-year, 896 installment note from Intexicon Bank. The note requires annual payments of $57,631, with the first payment occurring on September 30, Year 2 July 1 Oct. 1 Dec. 31. Accrued $7,600 of interest on the installment note. The interest is payable on the date of the next installment note payment. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $20,926 is combined with the semiannual interest payment. Year 2 June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $20,926 is combined with the semiannual interest payment. Sept. 30. Paid the annual payment on the note, which consisted of interest of $30,400 and principal of $27,231 Dec. 31. Accrued $7,055 of interest on the installment note. The interest is payable on the date of the next installment note payment. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $20,926 is combined with the semiannual interest payment Year 3 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $125,555 after payment of interest and amortization of discount have been recorded. (Record the redemption only.) une 30 Sept. 30. Paid the second annual payment on the note, which consisted of interest of $28,222 and principal of $29,409. Required 1. Journalize the entries to record the foregoing transactions. For compound transactions, if an amount box does not require an entry, leave it blank or enter "O", when required, round your answers to the nearest dollar. Date Account Debit Credit Year 1 uly 1 Oct. 1 Dec. 31