Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $930,000 of 20-year, 8%

Question

Thomson Co. produces and distributes semiconductors for use by computer
manufacturers. Thomson issued $930,000 of 20-year, 8% 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 Issued the bonds for cash at their
1
face amount.
Nov.
1
Paid the interest on the bonds.
Dec. Recorded accrued interest for two
31 months.
Journalize the entries to record the above selected transactions for the current
year. If an amount box does not require an entry, leave it blank.
May 1
ash
Bonds Payable
Nov. 1 Interest Expense
Cash
38
Feedback
Check My Work
Bonds payable is always recorded at face value. The semi-annual cash
payment to bondholders is the interest expense when bonds are sold at
face value.
Dec. 31 Interest Expense
Interest Payable

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