A-3 has been answered. Just need answers for #4-#8. Thank you!

Lundholm, Inc., reports financial statements each December 31 and issues $500,000, 11%, 15-year bonds dated May 1, 2012, with interest payments on October 31 and April 30. Assuming the bonds are sold at par on May 1, 2012, complete the financial statement effects template to reflect the following events:

(a) bond issuance on May 1, 2012,

(b) the first semiannual interest payment on October 31, 2012

(c) retirement of $300,000 of the bonds at 102 on November 1, 2012. 2. On December 31, 2016, ABC accrued $2,000 unpaid employee wages earned at period-end.

3. On December 31, 2016, ABC accrued $1,000 expected warranty costs on products sold during the period.

4. On Jan. 5 XYZ Co. issued 10,000 shares of common stock for $10 cash per share.

5. On Jan. 18 XYZ Co. repurchased 4,000 shares of common stock previously issued at $15 cash per share.

6. On Mar. 12 XYZ Co. resold 1,000 treasury shares acquired on January 18 for $19 cash per share.

7. On July 5, ABC declared and paid $8,000 cash dividend to shareholders on record.

8. On July 30, ABC declared and issued a 100% stock dividend on 45,000 outstanding shares of common stock. The par value of the stock was $5 per share.

Balance Sheet

Income Statement

Cash Asset

+

Noncash Asset

=

Liabilities

+

Contributed Capital

+

Retained Earnings (Or Earned Capital)

Revenue

-

Expense

=

Net Income

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