Reporting Financial Statement Effects of Bond Transactions Lundholm, Inc., which reports financial statements each December 31, is authorized to issue $900,000 of 7%, 15-year bonds dated May 1, 2015, with interest payments on October 31 and April 30. Assume the bonds are issued at par on May 1, 2015. a. Prepare journal entries to record the bond issuance, payment of the first semiannual period's interest, and retirement of $540,000 of the bonds at 103 on November 1, 2016. General Journal Date Description Debit Credit 5/1/15 10/31/15 11/1/16 Bonds payable b. Post the journal entries from part a to their respective T-accounts. Cash Bonds Payable Interest Expense Gain on Bonds Loss on Bonds c. Record each of the transactions from part a in the financial statement effects template. Note: Use negative signs with your answers, when needed. Balance Sheet Transaction Cash Asset + Noncash Assets = Liabilities + Contr. Capital + Earned Capital 5/1/15 Issue bonds 10/31/15 Interest payment on bonds 11/1/16 Early retirement of bonds, Income Statement Revenue Expenses = Net income S