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Novak, Inc. had outstanding $5,990,000 of 12% bonds (interest payable July 31 and January 31) due in 10 years. On July 1. It issued $9,140,000

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Novak, Inc. had outstanding $5,990,000 of 12% bonds (interest payable July 31 and January 31) due in 10 years. On July 1. It issued $9,140,000 of 11%, 15-year bonds (Interest payable July 1 and January 1) at 98. A portion of the proceeds was used to call the 12% bonds (with unamortized discount of $179,700) at 103 on August 1. ing accour Stock 90,000 20,000 Prepare has the followi Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. (Round answers to decimal places, es. 38,548. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date July 1 ount balan value Treasury 17,000 1,339,00 $5 par value (To record issuance of 11% bonds) August 1 CESUC SOFE CONDONG (To record retirement of 12% bonds) ante:O of 10 used Submit

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