Entries for Issuing Bonds Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $660,000 of 25-year, 7% 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. If an amount box does not require an entry, leave it blank. May 1 Cash & Bonds Payable 660,000 Now 1 Interest Expense Cash Dec. 31 Interest Expense 11.000 Interest Payable Bonds payable is always recorded at face value. The semi-annual cash payment to bondholders is the interest expense when bonds are sold at face value