Current Attempt in Progress Novak Corp. issues $3.30 million, 5-year, 13% bonds at 104, with interest payable annually January 1. The straight-line method is used to amortize bond premium. (a) Your Answer Correct Answer Correct answer icon Your answer is correct. Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 3432000 Bonds Payable 3300000 Premium on Bonds Payable 132000 eTextbook and Media Solution List of Accounts Attempts: 1 of 3 used

(b) Prepare the adjusting journal entry to record interest expense and bond premium amortization on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Interest Expense Premium on Bonds Payable Interest Payable