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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Entries for Issuing Bonds
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
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