On October 1, 20121, Novak Corp. issued $8401,000,8% 10 year bands at face value. The bands were dated October 1, 2021, and pay interest annually on October 1. Financial statements are prepared annually on December 31. Prenare the journal entry taccord the issuance of the bands. (Crail account titles are automatically indented when amount is entered. Do not indent manually Date Account Titles and Explanation Credit Debit B Oct. 1,2021 Cash D 40000 Bonds Payable 840000 eTextbook and Media List of Accounts Prepare the adjusting entry to record the accrual at Interest an December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do notIndent manually Account Titles and Explanation Debit Credit Date Dec. 31, 2021 Interest Expense 16800 Interest Payable 16800 eTextbook and Media Solution Assistance Used Dec 31, 2021 Interest Payable ($H40, DOCXBX X3/12 - $16,800 Interest expense - Face value of bond X Interest rate * 3/12) List of Accounts Shaw the balance sheet presentatian ot bands payable and bond Interest payablc on December 31, 2021. NOVAK CORP. Balance Sheet (Partial) December 31, 2021 Current Liabilities Interest Payable $ 16800 Lone-term Liabilities Bonds Payable 840000 Teethook and Media List of Accounts Prepare the oumal entry to record the payment of interest on October 1.2022. Credit accounts are automatically indented when amount is enteral. Do not indent manually Date Account Titles and Explanation Debit Credit Oct. 1,2022 Premium on Bonds Payable 47200 clextbook and Medis Solution Assistance Used 9/12 - $50,400 Oct. 1.2022 Interest Expense - ($40,000x8% Cash - $840,000x3%) - 567.200 (Interest expense - Face value of bond interest ratex 9/12) List of Accounts Prepare the adjusting entry to record the accrual or interest on December 31, 2022. Credit account cities are automatically indented when amount is entered. Da natindent manually Date Account Titles and Explanation Debit Credit Dec 31, 2022 c Textbook and Media List of Accounts Assume that an January 1, 2023, Novak Days the accrued bond Interest and calls the bonds. The call price is 105. Rccord the payment of Interest and redemption of the bond. Creditex.count titles are automatkaly indented when amount is entered. Do not indent manually Date Account Titles and Explanation Debit Credit Jan 1, 2023 To record payment of interest Jan. 1.2023 (To record the redemption of the bonds! eTextbook and Media Solution Assistanke Used Jan 1, 2022 Cash -($940,000 x 105% - $892,000 Loss on redemption Carrying value of bond - Face value of bord 105) List of Accounts