nson Co. produces and distributes semiconductors for use by computer ufacturers. Thomson Co. issued $240,000 of 10-year, 9% bonds on May 1 e current year at face value, with interest payable on May 1 and November e fiscal year of the company is the calendar year. nalize the entries to record the following selected transactions for the current Refer to the Chart of Accounts for exact wording of account titles. May Nov. Dec. 1 1 31 Issued the bonds for cash at their face amount. Paid the interest on the bonds. Recorded accrued interest for two months. 1 2 3 4 5 6 7 DATE DESCRIPTION Adjusting Entries JOURNAL POST. REF
nson Co. produces and distributes semiconductors for use by computer ufacturers. Thomson Co. issued $240,000 of 10-year, 9% bonds on May 1 e current year at face value, with interest payable on May 1 and November e fiscal year of the company is the calendar year. nalize the entries to record the following selected transactions for the current Refer to the Chart of Accounts for exact wording of account titles. May Nov. Dec. 1 1 31 Issued the bonds for cash at their face amount. Paid the interest on the bonds. Recorded accrued interest for two months. 1 2 3 4 5 6 7 DATE DESCRIPTION Adjusting Entries JOURNAL POST. REF
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:### Bond Issuance and Interest Journal Entries
#### Instructions:
Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $240,000 of 10-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.
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.
#### Transactions:
**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.
#### Journal Entry Table:
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT |
|------------|-------------------------|------------|-------|--------|
| | | | | |
| | | | | |
| | | | | |
| May 1 | | | | |
| | | | | |
| | | | | |
| Nov. 1 | | | | |
| | | | | |
| | | | | |
| Dec. 31 | Adjusting Entries | | | |
| | | | | |
This information will help students understand how to record journal entries for the issuance of bonds and the payment and accrual of bond interest.
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