Additional Problem 5 In an effort to raise some cash for operating activities, Novak Corporation...
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Accounting
Additional Problem 5 In an effort to raise some cash for operating activities, Novak Corporation approached Flounder Ltd. and asked to borrow $127,000 (the Presidents of Novak and Flounder were cousins). Founder agreed to loan $127,000 to Novak for three months at 6% interest. On August 1, Novak signed a promissory note for the amount, promising to repay the funds plus interest on November 1 Prepare all the journal entries on the books of Flounder to record the note receivable, assuming that Flounder's fiscal year-end is September 30 and repayment of the note receivable plus interest occurs on November 1. (Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) Date Account Titles and Esplanation Debit Credit
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