*P18-15 (Entries for Sinking Fund) The transactions given below relate to a sinking fund for retirement of long-term bonds of John Fremont Roofing: 1. In accordance with the terms of the bond indenture, cash in the amount of $150,000 is transferred at the end of the first year, from the regular cash account to the sinking fund. 2. Cordell Hull Siding Company 10% bonds of a par value of $50,000, maturing in 5 years, are pur- chased for $47,000. 3. 500 shares of Robert Lee Company 8% preferred stock ($50 par value) are purchased at $54 per share. 4. Annual interest of $5,000 is received on Cordell Hull Siding Company bonds. (Amortize a full year of discount using straight-line amortization.) 5. Sinking fund expenses of $480 are paid from sinking fund cash. 6. Anne Hutchinson Glass Company 9% bonds with interest payable February 1 and August 1 are purchased on April 15 at par value of $60,000 plus accrued interest. 7. Dividends of $2,000 are received on Robert Lee Company preferred stock. 8. All the Hutchinson Glass Company bonds are sold on September 1 at 101 plus accrued interest. Assume interest collected August 1 was properly recorded. 9. Investments carried in the fund at $1,583,000 are sold for $1,538,000. 10. The fund contains cash of $1,627,000 after disposing of all investments and paying all expenses. $1,600,000 of this amount is used to retire the bonds payable at maturity date. 11. The remaining cash balance is returned to the general account