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Novak Corp. issued $496,000, 6%, 20-year bonds on January 1, 2019, at 105. Interest is payable annually on January 1. Novak uses straight-line amortization for

Novak Corp. issued $496,000, 6%, 20-year bonds on January 1, 2019, at 105. Interest is payable annually on January 1. Novak uses straight-line amortization for bond premium or discount.

1. Prepare the journal entry to record the accrual of interest and the premium amortization on December 31, 2019.

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