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On September 1,2020, Novak Company sold at 104 (plus accrued interest) 5,880 of its 8%,10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each

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On September 1,2020, Novak Company sold at 104 (plus accrued interest) 5,880 of its 8%,10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $13 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Novak Company bonds Interest is payable on December 1 and June 1. Prepare in general journal format the entry to record the issuance of the honds. (Credit account titles are automatically indented when W amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter O for the amounts)

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