Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $840,000 of 10-year, 4% 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.

Answer and Explanation:

The journal entries are shown below:

On May 1

Cash   $840,000  

              To 4% Bonds Payable  $840,000

(Being the issued of the face value is recorded)  

On Nov 1

Interest Expense$16,800  

         To Cash A/c  $16,800

(Being the interest expense is recorded)

The computation is shown below:

= $840,000 × 4% × 6 months ÷ 12 months

= $16,800

On Dec 31

Interest Expense$5,600  

           To Interest Payable  $5,600

(Being the accrued interest is recorded)

The computation is shown below:

= $840,000 × 4% × 6 months ÷ 12 months

= $5,600

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30