Thomson Co. produces and distributes semiconductors for use by
computer manufacturers. Thomson issued $1,200,000 of 10-year, 12%
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.

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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.

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.

CHART
OF ACCOUNTS
Thomson Co.
General Ledger
ASSETS
110 Cash
111 Petty Cash
121 Accounts Receivable
122 Allowance for Doubtful
Accounts
126 Interest Receivable
127 Notes Receivable
131 Merchandise Inventory
141 Office Supplies
142 Store Supplies
151 Prepaid Insurance
191 Land
192 Store Equipment
193 Accumulated Depreciation-Store
Equipment
194 Office Equipment
195 Accumulated Depreciation-Office
Equipment
LIABILITIES
210 Accounts Payable
221 Salaries Payable
231 Sales Tax Payable
232 Interest Payable
241 Notes Payable
251 Bonds Payable
252 Discount on Bonds Payable
253 Premium on Bonds Payable
EQUITY
311 Common Stock
312 Paid-In Capital in Excess of
Par-Common Stock
315 Treasury Stock
321 Preferred Stock
322 Paid-In Capital in Excess of
Par-Preferred Stock
331 Paid-In Capital from Sale of
Treasury Stock
340 Retained Earnings
351 Cash Dividends
352 Stock Dividends
390 Income Summary
REVENUE
410 Sales
610 Interest Revenue
611 Gain on Redemption of Bonds
EXPENSES
510 Cost of Merchandise Sold
515 Credit Card Expense
516 Cash Short and Over
521 Sales Salaries Expense
522 Office Salaries Expense
531 Advertising Expense
532 Delivery Expense
533 Repairs Expense
534 Selling Expenses
535 Rent Expense
536 Insurance Expense
537 Office Supplies Expense
538 Store Supplies Expense
541 Bad Debt Expense
561 Depreciation Expense-Store
Equipment
562 Depreciation Expense-Office
Equipment
590 Miscellaneous Expense
710 Interest Expense
711 Loss on Redemption of Bonds

Question: Thomson Co. produces and distributes semiconductors for use bycomputer manufacturers. Thomson is...

Show transcribed image text Journa Joumalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. JOURNAL DATE POST. REF Adjusting Entries PAGE 10 ACCOUNTING EQUATION ASSETS LIABILITIES

Journa Joumalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. JOURNAL DATE POST. REF Adjusting Entries PAGE 10 ACCOUNTING EQUATION ASSETS LIABILITIES

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