Entries for issuing bonds Obj. 2 Thomson Co. produces and distributes semiconductors for use by computer manufacturers.

Thomson issued $800,000 of 10-year, 6% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year.

Journalize the entries to record the following selected transactions for the current year:

May 1. Issued the bonds for cash at their face amount.

Nov. 1. Paid the interest on the bonds.

Dec. 31. Recorded accrued interest for two months.

AppendixLO1