Question

^{CengageNOW | Online teachin x Entries Frar lung Runde Thomx + > c v2 P o w.com/ kusin e ss Mandolinvokm-&tassignment Session Lexaurinprogress-false Ch 11 block Show Me How Claw Fntries for Issuing Ronde Thomson C. produces and distributes semiconductors for use by computer manufacturers, Thomson l ed $600,000 of 20-year, 11%, bonds on May 1 of the current year at PACA VA with interest payable on May 1 and November 1. The fiscal Year of the company is the Calendar yra May 1 Issued the band for cash at their face amount. Nov. 1 Paid the interest on the bonds. Dec. 31 Recorded crued interest for two months. Tournalize the entries to record the above Selected transactions for the current year. If an amount hox dors not require an entry, leave it blank May Cash Bonds Payable Nov.1 Interest Expenses ܂ ܫܬܕ Dec. 31 Interest Expense Interest Payable y Bands payable is always recorded at face value. The annual cash payment to bondholders in the interest expense when bonde are sold at face value Check My Work Freukus Next > Assignment Score: 55.15% All work saved. Save and Exit Submit Assignment for Grading Type here to search A&W 3000}

Answer 1

Interest expense (May to Nov) = $600,000 X 11% X 6/12 = $33,000

Interest payable (Nov to Dec) = $600,000 X 11% X 2/12 = $11,000

Date	Account Titles	Debit	Credit
May 1	Cash	$600,000	-
	Bonds Payable	-	$600,000
Nov 1	Interest Expense	$33,000	-
	Cash	-	$33,000
Dec 31	Interest Expense	$11,000	-
	Interest Payable	-	$11,000