Entries for Issuing Bonds

Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $540,000 of 15-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 1Issued the bonds for cash at their face amount.

Nov. 1Paid the interest on the bonds.

Dec. 31Recorded 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

Nov. 1

Dec. 31