PRINTER VERSION BACK NEXT Exercise 7-11 ab Pronghorn Corp. was experiencing cash flow problems and was unable to pay its $103,000 account payable to Monty Corp. when it fell due on September 30, 2020. Monty agreed to substitute a one year note for the open account. The following two options were presented to Pronghorn by Monty Corp.: Option A one-year note for $103,000 due September 30, 2021. Interest at a rate of 10% would be payable at 1: maturity Option 2: A one-year non-interest-bearing note for $113,300. The implied rate of interest is 10% Assume that Monty Corp, has a December 31 year end. Assuming Pronghorn Corp. chooses Option 1, prepare the entries required on Monty Corps books on September 30, 2020, December 31, 2020, and September 30, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Il no entry is required, select "No Entry for the account titles and enter o for the amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Assuming Pronghorn Corp. chooses Option 2, prepare the entries required on Monty Corp.'s books on September 30, 2020, December 31, 2020, and September 30, 2021. (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 o for the amounts. Round answers to o decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit