On July $1,2024,$ Moonlight Bay issued bonds with a face amount of $$1,600,000.$ The bonds mature in $10$ years and interest of $11\%$ is payable semiannually on June $30$ and December $31.$ The bonds were issued at a price to yield investors $12\%.$ Moonlight Bay records interest at the effective rate.

At December $31,2023,$ Moonlight Bay had a $10\%$ installment note payable to Third Mercantile Bank with a balance of $$630,000.$ The annual payment is $$125,000,$ payable each June $30.$

On January $1,2024,$ Moonlight Bay leased a building under a finance lease calling for four annual lease payments of $$50,000$ beginning January $1,2024.$ Moonlight Bay$$s incremental borrowing rate on the date of the lease was $11\%$ and the lessor$$s implicit rate, which was known by Moonlight Bay, was $10\%$