3. 2 Qon mach R 14 marks $750,000 of 15-year bonds at 105 on July 1, 2007. Interest is payable semi-annually December 31 and June 30, Theogh June 30, 2014, the company amortized $15,558 of the bond On July 1, 2014, the company retired the bond at 98 Pre the journal entries so record the (s) issue and (b) retirement of these bonds. Jackal Body 3 8 marks Explain what will cause each of the following balance sheet items to increase or decrease. AD is accumulated depreciation The AD item is done for you. Balance sheet item AD A/R Increase Depreciation expense Accusal Revenue Decrease AD of asset sold A/R Prepaid expense A/P Unearned revenue 6 marks Asset Value Rate of return A $6,000 5% B 5,000 10% 2,000 4% 4,000 ? 5,000 6%