Curtis Steel Appliances)

Curtis Steel Appliances Company has the following transactions related to liabilities in the fourth quarter of 2014 and the first quarter in 2015. Curtis Steels fiscal year end is December 31. Its financial statements are issued in April.

2014
1	On Oct 1, borrowed $12 million cash from First Bank of Sylva under the line of credit and issued a five month promissory note. Interest at the prime rate of 10% was payable at maturity. Management planned to issue 10-year bonds in February to repay the note.
2	On November 1, Curtis Steel rented a portion of its factory to a tenant for $30,000 per year, payable in advance. (i.e., the money has been received)
3	During the 4th quarter, sales on account totaled $4,100,000. The state sales tax rate is 3% and the local sales tax rate is 3%. (This is a summary entry for the various transactions during the quarter)
4	Record the adjusting entry for accrued interest.

Prepare the appropriate journal entries for these transactions if required. If no entry is required, indicate if discourse is required.