Question: Question 1: Lime Co. sells $6,000,000 of 9% bonds on April 1, 2014. The bonds pay interest on October 1 and April 1. The due date of the bonds is October 1, 2018. The bonds yield 8%. Issuance costs were $70,000, and all were incurred on April 1, 2014. The company uses the effective interest method of accounting for bond premiums and discounts. It records bond interest costs as a deferred charge and amortizes them on a straight-line basis. Round all amounts to the nearest dollar. a. Determine the bond price, i.e., what it will sell for. Show all computations. b. Prepare an amortization table for the life of the bonds in good form. c. Prepare journal entries for the following dates in proper form, including explanations. April 1, 2014 October 1, 2014 December 31, 2014 year-end adjusting entries. d. Provide income statement and classified balance sheet excerpts for the bonds as of and for the year ended December 31, 2014. Include a proper heading for each. Only show the categories (i.e., current assets, noncurrent liabilities, etc.) and line items and amounts that apply to this question. Do not show the cash account on these excerpts. (Do include cash if it is relevant to journal entries.) e. Prepare journal entries for April 1, 2015 in proper form, including explanations. Assume the company does NOT make reversing entries. Question 2: Locate Accounting Standards Update (ASU) No. 2015-03, issued April 2015, in the Accounting Standards Codification, and answer the following questions in complete sentences restating the questions. Do not copy and paste your answers. This may be done in Word or Excel. What is the title and subtitle of this ASU? What are the main provisions (requirements) of this ASU? What is its effective date? How does this question affect (change your answers) to question 1?