During the December $31,2023$ Financial Statement Audit, the company conducted a thorough internal

audit, during which the following facts were discovered. The audit occurred before any adjusting

entries or closing entries are prepared. $($Assume the $2022$ books are closed$)$

The Company purchased a machine for $$115,000$ on January $1,2020.$ Lundholm depreciates

machines of this type by the straight$-$line method over a $7-$vear period using no salvage value. Due

to a change in sales patterns, on January $1,2023,$ management determines the useful life of the

machine to be a total of $8$ years, and has a salvage value of $$15,000.$ What amount should Lundholm

record for depreciation expense for $2023?$

The Company purchased machinery on July $1,2023.$ The machinery was valued at $$2,250,000,$ with a

$$250,000$ down payment, and the Company agreed to pay the balance in $6$ equal installments

$($$$394,035),$ payable each June $30.$ The company has a borrowing rate of $5\mathrm{.}0\%.$ There is no salvage

value, and the useful life is $10$ vears.

The following journal entries were recorded:

A $10-$year bonds were issued on September $1,2022.$ The face value of the bonds totaled $$200,000$

with a stated rate of $8\%.$ The market rate was $6\%$ when the bonds were issued. Interest is paid

annually on August $30$ of each year. The following journal entry was recorded when the bonds were

issued, and the interest paid:

$9/1/2022$ Bond Issuance

$\frac{9}{1}\frac{?}{2023}$

$($EXTRA CREDIT$)$ Two years earlier, The Company recorded a $5\%$ stock dividend common

shares, $$1$ par$)$ as follows:

The shares had a market price at the time of $$20$ per share,