On July 1, 2020, Novak Corporation purchased the net assets of Soorya Company by paying $427,000 cash and issuing a $52,400 note payable to Soorya Company. At July 1, 2020, the statement of financial position of Soorya Company was as follows:

Cash		$75,800		Accounts payable		$310,900
Accounts receivable		114,000		Soorya, capital		241,000
Inventory		98,400		Total		$551,900
Land		50,700
Buildings (net)		75,800
Equipment (net)		87,400
Trademarks (net)		49,800
Total		$551,900

The recorded amounts all approximate current values except for land (worth $61,300), inventory (worth $136,400), and trademarks (worthless). The receivables are shown net of an allowance for doubtful accounts of $13,000. The amounts for buildings, equipment, and trademarks are shown net of accumulated amortization of $22,000, $26,000, and $52,000, respectively.

(a) Prepare the July 1, 2020 entry for Novak Corporation to record the purchase. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
July 1, 2020