Novak Corporation sold $2,350,000, 6%, 5 year bonds on January 1, 2017 and payed interest on January 1st. Straightline Method...

Problem 10-8A Novak Corporation sold $2,350,000, 6%, s-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on January 1. Novak Corporation uses the straight-line method to amortize bond premium or discount. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 106. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Date Account Titles and Explanation Jan. 1 Dec. 31 SHOW LIST OF ACCOUNTS