Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $990,000 of 15-year, 9% 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. If an amount box does not require an entry, leave it blank. May 1 Nov. 1 Cash Bonds Payable Interest Expense Cash Dec. 31 Interest Expense Interest Payable ✓ 990,000 89,100 X 15,000 X 990,000 89,100 X 15,000 X

Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $990,000 of 15-year, 9% 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. If an amount box does not require an entry, leave it blank. May 1 Nov. 1 Cash Bonds Payable Interest Expense Cash Dec. 31 Interest Expense Interest Payable ✓ 990,000 89,100 X 15,000 X 990,000 89,100 X 15,000 X

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 8E

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