On August 31 , Cullumber Co. partially refunded $404,000 of its outstanding 10% note payable made one year ago to Dgan $ tate - Bank by paying $404,000 plus $40,400 interest, having obtained the $444,400 by using $117,710 cash and signing a new one-year $359,000 note discounted at 9% by the bank. Make the entry to record the partial refunding. Assume Cullumber Co. makes reversing entries when appropriate. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Prepare the adjusting entry at December 31 , assuming straight-line amortization of the discount. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)