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Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $480,000 of 15-year, 10% bonds on May 1 of the current
Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $480,000 of 15-year, 10% 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. |
Entries for Issuing Bonds Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $480,000 of 15-year, 10% 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 Bonds Payable Nov. 1 Interest Expense Cash Dec. 31 Interest Expense Interest Payable
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