Lennar Homes is a nationwide builder of new homes that has constructed more than 140.000 singlefamily residences since its founding in 1954. The company is currently traded on the New York Stock Exchange. Lennar's annual report contained the following information (in thousands):

Required: 1. Record interest expense using a single journal entry for each year. Assume the bonds were sold at par. 2. Record the issuance of bonds payable, assuming that the full amount was sold during 2001

. 3. Recognizing that Lennar is a home builder, why do you think that the amounts of bonds payable increased so much during this period?

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Interest expense Bonds payable 2001 $ 119.503 1.505.255 2000 $ 98.601 1.254.650 1999 $ 48.859 523.661