Record the effects of following transactions using the financial statement effects template.

1. 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.

Balance Sheet Income Statement Retained Earnings (Or Cash Noncash Contributed Earned Net Asset + Asset Liabilities + Capital + Capital) Revenue Expense Income 1(a) 1(b) 1(c) 2 3