P15-1A On May 1, 2017, Hemon Corp. issued $600,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2017, and pay interest annually on May 1. Financial state- ments are prepared annually on December 31 Instructions (a) Prepare the journal entry to record the issuance of the bonds. (b) Prepare the adjusting entry to record the accrual of interest on December 31, 2017 (c) Show the balance sheet presentation on December 31, 2017 (d) Prepare the journal entry to record payment of interest on May 1, 2018 (e) Prepare the adjusting entry to record the accrual of interest on December 31, 2018. (f) Assume that on January 1, 2019, Herron pays the accrual bond interest and calls the bonds. The call price is 102. Record the payment of interest and redemption of the bonds 15- P15-5A Presented below are three different lease transactions that occurred for Ruggiero Inc. in 2017. Assume that all lease contracts start on January 1, 2017. In no case does Rug- giero receive title to the properties leased during or at the end of the lease term. Lessor Judson Delivery Heser Co. Gu Type of property Yearly rental Lease term Estimated economic life Fair value of lease asset Present value of the lease Computer 5,000 6 years 7 years $27,500 Delivery equipment S 4,200 4 years 7 years $19,000 Gunselman Auto Automobile 3,700 2 years 5 years $11,000 rental payments Bargain purchase option $26,000 None $13,000 None 6,400 None Instructions (a) Which of the leases are operating leases and which are capital leases? Explain