Novak Corp. sold $$2,660,000,8\%,5-$year bonds on January $1,2022.$ The bonds were dated January $1,2022,$ and pay interest on

January $1.$ Novak Corp. uses the straight$-$line method to amortize bond premium or discount.

$($a$)$

Your answer is partially correct.

Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for $2022,$ assuming that

the bonds sold at $101.($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is

required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

late

Account Titles and Explanation

Debit

Credit

Cash

Bonds Payable

Premium on Bonds Payable

$31,2022$

Interest Expense

Premium on Bonds Payable

Interest PayableNovak Corp. sold $2,660,000,8\%,5$ year bonds on January $1,2022.$ The bonds were dated January $1,2022,$ and pay interest on January $1.$ Novak Corp. uses the straight line method to amortize bond premium or discount. Prepare all the necessary journal enteries to record the issuance of the bonds and bond interest expense for $2022,$ assuming that the bonds sold at $101.$