Journalize the entries to record the selected transactions

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Problem - Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $900,000 of 10-year, 7% 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:

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.

Reference no: EM132692442

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