FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Entries for issuing bonds
Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $1,200,000 of 10-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.
| Date | Transaction |
|---|---|
| May 1. | Issued the bonds for cash at their face amount. |
| November 1. | Paid the interest on the bonds. |
| December 31. | Recorded accrued interest for 2 months. |
nsactions for the current year. If an amount box does not require an entry, leave it blank.
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