Question: 1. On November 1, Bahama Cruise Lines borrows $3 million and issues a sixmonth, 6% note payable. Interest is payable at maturity. Record the issuance of the note and the appropriate adjustment for interest expense at December 31, the end of the reporting period.

2. On November 1, Bahama National Bank lends $3 million and accepts a sixmonth, 6% note receivable. Interest is due at maturity. Record the acceptance of the note and the appropriate adjustment for interest revenue at December 31, the end of the reporting period.