Entries for Issuing Bonds

Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $750,000 of 20-year, 12% 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.

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.

Journalize the entries to record the above selected transactions for the current year. Round your answers to whole number.

Entries for Issuing Bonds Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $750,000 of 20-year, 12% 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. Issued the bonds for cash at their face amount. May 1 Paid the interest on the bonds. Nov. 1 Dec. 31 Recorded accrued interest for two months. Journalize the entries to record the above selected transactions for the current year. Round your answers to whole number. May 1 Nov. 1 Dec. 31 Bonds Payable Cash Discount on Bonds Payable Interest Expense Interest Payable Premium on Bonds Payable