Thomson Co. produces and distributes semiconductors tor use by computer manufacturers. Thomson ksued $480,000 of 20 -year, 776 bonds on May 1 of the current year at face value, with interest poyable on May 1 and November 1 . The fiscal year of the compary is the calendar vear. May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. Dec. 31 Recorded acrued interest for two months