a. Prepare journal entries to record (1) the issuance of the mortgage note payable, (2) the pay. ment of the first installment on June 30,2016 , and (3) the payment of the second installment on December 31, 2016. Round amounts to the nearest dollar. b. Post the journal entries from part a to their respective T-accounts. c. Record each of the transactions from part a in the financial statement effects template. M9-37. Determining Bond Prices Lunar, Inc., plans to issue $900,000 of 10% bonds that will pay interest semiannually and mature in 5 years. Assume that the effective interest rate is 12% per year compounded semiannually. Compute the selling price of the bonds. Use Tables 2 and 3 in Appendix A near the end of the book, 9-38. Analyzing and Computing Accrued Warranty Liability and Expense Waymire Company sells a motor that carries a 60-day unconditional warranty against product failure. Waymire estimates that between the sale and lapse of the product warranty, 2% of the 69,000 units sold this period will require repair at an average cost of $50 per unit. The warranty liability for this product had a beginning-of-period balance of $30,000, and $27,000 has already been spent on warranty repairs and replacements during the period. a. How much warranty expense must Waymire report in its income statement and what amount of warranty liability must it report on its balance sheet for this year? b. What analysis issues do we need to consider with respect to the amount of reported warranty liability? c. What solvency ratios are increased if warranty liabilities rise