Analyzing and Reporting Financial Statement Effects of Bond Transactions Lundholm, Inc., reports financial statements each December 31 and issues $600,000, 7%, 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 to reflect the following events:

a. Bond issuance.
b. The first semiannual interest payment.
c. Retirement of $200,000 of the bonds at 101 on November 1, 2012.

Balance Sheet

Transaction Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital

Income Statement

Revenue - Expenses = Net Income