Thomson Co. produces and distributes semiconductors for use by computer manufact

Question

Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $540,000 of 10-year, 11% 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.

Journalize the entries to record the following selected transactions for the current year. Refer to the Chart of Accounts for exact wording of account titles.

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.

Explanation / Answer

1-May Cash 540000         Bonds Payable 540000 1-Nov Interest expense 29700 =540000*11%/2         Cash 29700 31-Dec Interest expense 9900 =540000*11%/12*2        Interest payable 9900

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.