Make the journal entry to record the issue of the bonds

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On January 1, 2020, Novak Corporation issued 10% bonds with a par value of $3,610,000, due in 10 years. The company incurred $222,000 in costs associated with the issuance of the bonds, which were capitalized. The bonds were issued at 102, and paid interest on January 1 and July 1 each year. Novak's year-end was March 31. The company followed ASPE and chose to use the straight-line method of amortization for bond discounts or premiums.

Problem 1: Prepare the journal entry to record the issue of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Reference no: EM132662861

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