1) Prepare journal entries to record the transactions. Novak prepares adjusting entries once a year on December 31.

Novak Company had the following select transactions. Accepted Goodwin Company's 12-month, 16% note in settlement of a 1, 2020 July 1, 2020 Dec. 31, 2020 Apr. 1, 2021 Apr. 1, 2021 $98,600 account receivable Loaned $100,600 cash to Thomas Slocombe on a 9-month, 14% note. Accrued interest on all notes receivable. Received principal plus interest on the Goodwin note. Thomas Slocombe dishonored its note; Novak expects it will eventually collect. Prepare journal entries to record the transactions. Novak prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (To record interest at 16%) (To record interest at 14%) (To record principal plus interest on the Goodwin note)