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(Solved): On January 1 2025 Novak Company sold 11% bonds having a maturity value of $500,000.00 for $518,953.4 ...



On January 1 2025 Novak Company sold 11% bonds having a maturity value of $500,000.00 for $518,953.45 which provides the bondholders with 10% yield. The bonds are dated January 1,2025 and mature January 1,2030 with interest payable December 31 of each year. Novak company allocates interest and unamortized discount or premium of the effective interest basis. Prepare the journal entry at the date of the bond issuance.



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