CengageNOWv2 Online teacGThomson Co. produces and d x om/lrm/takeAssignment/take

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CengageNOWv2 Online teacGThomson Co. produces and d x om/lrm/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessiont.ocator; assignment eBook Show Me How Calaator Entries for Issuing Bonds Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $930,000 al 2s-year, 10bonds 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. Dournalize the entries to record the above selected transactions for the current year May 1 Now. 1 Dec. 31 PreviousNot Check My Work All work saved

Explanation / Answer

Answer:

Date

Description

Debit $

Credit $

1-May

Cash

930,000

Bonds Payable

930,000

(to record the issue of bond)

1-Nov

Interest expanses

46500

Cash (930,000x10%x6/12)

46500

(to record the Payment of interest
on Bond)

31-Dec

Interest expanses

15500

Interest Payable

15500

(to record the Accrued interest
on Bond)

,=930,000x10%x6/12
=15,500

               

Date

Description

Debit $

Credit $

1-May

Cash

930,000

Bonds Payable

930,000

(to record the issue of bond)

1-Nov

Interest expanses

46500

Cash (930,000x10%x6/12)

46500

(to record the Payment of interest
on Bond)

31-Dec

Interest expanses

15500

Interest Payable

15500

(to record the Accrued interest
on Bond)

,=930,000x10%x6/12
=15,500

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