The following are selected 2020 transactions of Novak Corporation.

Sept. 1		Purchased inventory from Orion Company on account for $52,800. Novak uses a periodic inventory system.
Oct. 1		Issued a $52,800, 12-month, 8% note to Orion in payment of Novak’s account.
1		Borrowed $79,100 from the bank by signing a 12-month, non–interest-bearing $80,400 note.

Prepare the journal entries for the payment of the notes at maturity. Assume no other accruals of interest were recorded since the December 31, 2020 year end. (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.)

Date	Account Titles and Explanation	Debit	Credit
Oct. 1/21
	(To record repayment of 8% note)
Oct. 1/21
	(To accrue interest expense on non–interest-bearing note)
	(To record repayment of non–interest-bearing note)

Answer rating: 100% (QA)

Step 12 Date Oct 01 2021 Oct 01 2021 Step 22 Account Titles and Explanation No... View the full answer