Entries for Issuing Bonds Thomson Co. produces and distributes semiconductors for use by computer manufactures. Thomson Co. issued S540,000 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. May 1 Cash 40,000 Bonds Payable 540,000 Dec. 31