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On January 1,2025, Novak Corporation issued $550,000 of 7% bonds, due in 8 years. The...

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Accounting

On January 1,2025, Novak Corporation issued $550,000 of 7% bonds, due in 8 years. The bonds were issued for $517,956, and pay interest each July 1 and January 1. Novak uses the effective-interest method.
Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 8%.(Round answers to 0 decimal places, e.g.38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
No.
Date
Account Titles and Explanation
Debit
Cred
(a)
(b)
(c)
image

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