Entries for Issuing Bonds

Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $480,000 of 15-year, 8% 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.

May 1	Cash
	Bonds Payable
Nov. 1	Interest Expense
	Cash
Dec. 31	Interest Expense
	Interest Payable