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Record the effects of following transactions using the financial statement effects template. Entry the correct amount into the appropriate account category or parentheses. Indicate a
Record the effects of following transactions using the financial statement effects template. Entry the correct amount into the appropriate account category or parentheses. Indicate a decrease in an account category by including a negative sign with the amount. 1. Lundholm, Inc., reports financial statements each December 31 and issues 5400,000, 12%, 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 $3,000 unpaid employee wages camed at period-end. 3. In 2016, ABC sold 100,000 units of product that carries a 60-day warranty) and it estimated 2% units sold require repair at an average cost of $50 per unit. On Dec 31, 2016 ABC accrued expected warranty costs on products sold during the year. Balance Sheet Income Statement Cash Asset Noncash + Asset Retained Earnings (Or Earned Capital) Contributed + Capital Liabilities Revenue Expense Net Income la) 10 10) 2 3
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