Assume that on October 1 of this year, Southport borrowed $6.5 million cash from Wells Fargo Bank to meet short-term obligations. Southport signed an interetst-bearing note and promised to repay the $6.5 million in nine months. The annual interest rate was 5%. All interest will accrue and be paid when the note is due in nine months. Southports accounting period ends on December 31.

(a) Provide the journal entry to record the note on October 1, Year 1.

(b) Provbide any adjusting entry required at the end of the accounting period ending on December 31, Year 1.

(c) Provide the journal entry to record payment of the note and interest on the maturity date, June 30, Year 2.