Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $240,000 of 10-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.

Journalize the entries to record the following selected transactions for the current year. Refer to the Chart of Accounts for exact wording of account titles.

May1 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.

CHART OF ACCOUNTS

Thomson Co. General Ledger

ASSETS

110 Cash

111 Petty Cash

121 Accounts Receivable

122 Allowance for Doubtful Accounts

126 Interest Receivable

127 Notes Receivable

131 Merchandise Inventory

141 Office Supplies

142 Store Supplies

151 Prepaid Insurance

191 Land

192 Store Equipment

193 Accumulated Depreciation-Store Equipment

194 Office Equipment

195 Accumulated Depreciation-Office Equipment

LIABILITIES

210 Accounts Payable

221 Salaries Payable

231 Sales Tax Payable

232 Interest Payable

241 Notes Payable

251 Bonds Payable

252 Discount on Bonds Payable

253 Premium on Bonds Payable

EQUITY

311 Common Stock

312 Paid-In Capital in Excess of Par-Common Stock

315 Treasury Stock

321 Preferred Stock

322 Paid-In Capital in Excess of Par-Preferred Stock

331 Paid-In Capital from Sale of Treasury Stock

340 Retained Earnings

351 Cash Dividends

352 Stock Dividends

390 Income Summary

REVENUE

410 Sales

610 Interest Revenue

611 Gain on Redemption of Bonds