On November 1, Bahama Cruise Lines borrows $4 million and issues a six-month, 6% note payable. Interest is payable at maturity.

Determine the financial statement effects of (1) the issuance of the note and (2) the adjusting entry for interest owed by December 31, the end of the reporting period.

On November 1 , Bahama Cruise Lines borrows $4 million and issues a six-month, 6% note payable. Interest is payable at maturity. Determine the financial statement effects of (1) the issuance of the note and (2) the adjusting entry for interest owed by December 31 , the end of the reporting period. Answer is not complete. Complete this question by entering your answers in the tabs below. Determine the financial statement effects of the adjusting entry for interest owed by December 31 , the end of the reporting period. (Amounts be deducted should be entered with minus sign. Enter your answers in dollars, not millions. For example, $5.5 million should be entered as 5,500,000