Lundholm, Inc., which reports financial statements each December31, is authorized to issue $500,000 of...

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Accounting

Lundholm, Inc., which reports financial statements each December31, is authorized to issue $500,000 of 9%, 15-year bonds dated May1, 2015, with interest payments on october 31 and April 30. Assumethe bonds are issued at par on May 1, 2015.
a) Prepare Journal entries to record the bond issuance, paymentof the first semiannual period's interest, and retirement of$300,000 of the bonds at 101 on November 1, 2016.
b) Post the Journal entries from part a) to their respectiveT-Accounts
c) Record each of the transactions from part a in the financialstatement effects template

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a 1 May 2015 Cash ac Dr 500000 To Bonds payable 500000 Bonds issued at par 31st oct 2015 Bond Interest expense ac Dr 22500 To Cash ac 22500 Interest payable semi annually 5000009612 31st Dec 2015 Bond Interest Expense ac Dr 7500 To Interest Payable ac 7500 To record accrued interest for november december payable in See Answer

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In: AccountingLundholm, Inc., which reports financial statements each December31, is authorized to issue $500,000 of 9%,...Lundholm, Inc., which reports financial statements each December31, is authorized to issue $500,000 of 9%, 15-year bonds dated May1, 2015, with interest payments on october 31 and April 30. Assumethe bonds are issued at par on May 1, 2015.a) Prepare Journal entries to record the bond issuance, paymentof the first semiannual period's interest, and retirement of$300,000 of the bonds at 101 on November 1, 2016.b) Post the Journal entries from part a) to their respectiveT-Accountsc) Record each of the transactions from part a in the financialstatement effects template