EX.11-02.ALGO

Entries for Issuing Bonds Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $330,000 of 15-year, 9% 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 330,000 Bonds Payable 330,000 Nov. 1 Interest Expense 24,750 Cash 24,750 X Dec. 31 Interest Expense 8,250 X Interest Payable 8,250 X