1. By December 31, 2023, Novak Corp. had performed a significant amount of environmental consulting services for Wildhorse Ltd. Wildhorse was short of cash, and Novak agreed to accept a $225,000, non-interest-bearing note due December 31, 2025, as payment in full. Wildhorse is a bit of a credit risk and typically borrows funds at a rate of 15%. Novak is much more creditworthy and has various lines of credit at 9%. Novak reports under IFRS. The tables this problem are to be used as a reference for this problem. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY.
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3.  Your answer is incorrect. Prepare the journal entry to record the transaction on December 31, 2023, for Novak. 
4. For calculation purposes, use 5 decimal places as displayed in the factor table provided. 
5. Credit account titles are automatically indented when the amount is entered. 
6. Do not indent manually.
7.  If no entry is required, select "No Entry" for the account titles and enter O for the amounts. 
8. List all debit entries before credit entries.