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Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $800,000 of 10-year, 6% 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.
Problem 1: 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.
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