Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $360,000 of 20 -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