Question: Novak Corp. was experiencing cash flow problems and was unable to pay its $92,400 account payable to Pina Corp. when it fell due on September

Novak Corp. was experiencing cash flow problems and was unable to pay its $92,400 account payable to Pina Corp. when it fell due on September 30, 2023. Pina agreed to substitute a oneyear note for the open account. The following two options were presented to Novak by Pina: Option 1: A one-year note for $92,400 due September 30, 2024. Interest at a rate of 10% would be payable at maturity. Option 2: A one-year noninterest-bearing note for $101,640. The implied rate of interest is 10%. Assume that Pina has a December 31 year end. Assuming Novak chooses Option 1, prepare the entries required on Pinas books on September 30, 2023, December 31, 2023, and September 30, 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entriesin the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit

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