Make a journal entry for all of them During the December $31,2025$ Financial Statement Audit, the company conducted a thorough internal audit, during which the following facts were discovered. The audit occurred after any adjusting entries, but prior to any closing entrie. $($Assume the $2024$ books are closed$)$

$1.$ The Company purchased a machine for $$105,000$ on January $1,2020.$ Lundholm depreciates machines of this type by the straight$-$line method over a $7-$year period using no salvage value. Due to a change in sales patterns, on January $1,2022,$ management determines the useful life of the machine to be a total of $9$ years, and has a salvage value of $$5,000.$ What amount should Lundholm record for depreciation expense for $2022?$

$2.$ The Company purchased machinery on July $1,2022.$ The machinery was valued at $$2,500,000,$ with a $$200,000$ down and the Company agreed to pay the balance in $5$ equal installments $($$$531,242),$ payable each June $30.$ The company has a borrowing rate of $5\%.$ There is no salvage value, and the useful life is $10$ years.

The following journal entries were recorded:

$1-$Jul$-25$

DR PP&E $-$ Machinery $$2,500,000$

CR Note Payable $$2,500,000$

DR Repairs and maintenance $$200,000$

CR Cash $$200,000$

$3.$ A $10-$year bonds were issued on September $1,2024.$ The face value of the bonds totaled $$100,000$ with a stated rate of $8\%.$ The market rate was $6\%$ when the bonds were issued. Interest is paid annually on August $30$ of each year. The following journal entry was recorded when the bonds were issued, and the interest paid:

$9/1/2024$ Bond Issuance

DR Cash $$114,720$

CR Gain on Bonds Payable $$14,720$

CR Bonds Payable $$100,000$

$9/1/2025$

DR Interest Expense $$8,000$

CR Cash $$8,000$

$4.$ Two years earlier, The Company recorded a $5\%$ stock dividend $(3,000$ common shares, $$1$ par$)$ as follows:

DR Retained earnings $$3,000$

CR Common stock $$3,000$

The shares had a market price at the time of $$15$ per share.