Novak Corporation is in the business of selling cattle. Due to recent diseases plaguing cattle, Novak is experiencing a cash shortage. Novak issued a $268,800, 6-year, zero-interest-bearing note to Little Town Corp. on January 1, 2023, and received $192,000 cash. In addition, to conserve cash, Novak agreed to sell cattle to Little Town for an amount less than the regular selling price over the 6-year period. The market interest rate for similar notes is 8%. Novak uses the effective interest method. (a) Calculate the present value of the note on January 1 using (1) a financial calculator or (2) Excel function PV. (Hint: Refer to Chapter 3 for tips on calculating.) (Round answer to O decimal places e.g. 58,971.) Present value of the note $ 169397 (b) Prepare Novak's January 1 journal entry. (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 answer to O decimal places e.g. 58,971.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Account Titles and Explanation Debit Credit