### 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.

A bond is an income instrument of the company, that shows the loan which has been made by the…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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