Portage Corporation began 2021 owing notes payable of $4.0 million. During 2021, Portage borrowed $1.9 million on notes payable and paid off $1.7 million of notes payable from prior years. Interest expense for the year was $1.1 million, including $0.2 million of interest payable accrued at December 31, 2021. 

Show what Portage should report for these facts on the following financial statements:

1. Income statement for 2021

a. Interest expense

2. Balance sheet as of December 31, 2021

a. Notes payable

b. Interest payable