The Companys Long-Term Debt footnote (not attached) includes the following information: In the 2013 third quarter, we issued $350 million aggregate principal amount of 3.4 percent Series M Notes due 2020 (the Series M Notes). We received net proceeds of approximately $345 million from the offering, after deducting the underwriting discount and estimated expenses. We pay interest on the Series M Notes on April 15 and October 15 of each year, commencing on April 15, 2014. These Series M Notes are described as: Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 (effective interest rate of 3.6%) (a) What journal entry would have been recorded in the third quarter of 2013 to record the issuance of the Series M Notes? (b) Record the interest payment and interest expense on April 15 and October 15, 2014. Assume the effective interest method, and record your responses to the nearest thousand dollars. April 15: October 15: (c) Assume that, at the end of 2014, the prevailing market rate for interest obligations similar to these notes was 4.0%. What would be the approximate net carrying or book value of the notes at the year end? Explain.

EXCERPTS FROM MARRIOTT INTERNATIONAL, INC.'S 10-K FOR THE YEAR ENDED DECEMBER 31, 2014 MARRIOTT INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF INCOME Fiscal Years 2014, 2013, and 2012 ($ in millions, except per share amounts) December 31, 2014 December 31, 2013 December 28, 2012 $ $ $ 621 666 581 607 REVENUES Base management fees Franchise fees Incentive management fees Owned, leased, and other revenue Cost reimbursements 256 232 672 745 302 1,022 11,055 13,796 950 10,291 12,784 989 9,405 11,814 OPERATING COSTS AND EXPENSES Owned, leased, and other-direct Reimbursed costs Depreciation, amortization, and other General, administrative, and other OPERATING INCOME Gains and other income Interest expense Interest income Equity in earnings (losses) INCOME BEFORE INCOME TAXES Provision for income taxes NET INCOME EARNINGS PER SHARE-Basic Earnings per share EARNINGS PER SHARE-Diluted Earnings per share 775 11,055 148 659 12,637 1,159 8 (115) 30 6 1,088 (335) 753 729 10,291 127 649 11,796 988 11 (120) 23 (5) 897 (271) 626 785 9,405 102 582 10,874 940 42 (137) 17 (13) 849 (278) 571 $ $ $ 2.60 $ 2.05 $ 1.77 $ 2.54 $ 2.00 1.72 See Notes to Consolidated Financial Statements. MARRIOTT INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS Fiscal Years-Ended 2014 and 2013 ($ in millions) December 31, 2014 December 31, 2013 $ $ ASSETS Current assets Cash and equivalents Accounts and notes receivable, net Current deferred taxes, net Prepaid expenses Other Assets held for sale 104 1,100 311 64 109 233 1,921 1,460 126 1,081 252 67 27 350 1,903 1,543 Property and equipment, net Intangible assets Contract acquisition costs and other Goodwill 1,131 1,351 894 874 2,245 Equity and cost method investments Notes receivable, net Deferred taxes, net Other noncurrent assets 224 215 530 270 6,865 2,005 222 142 647 332 6,794 $ LIABILITIES AND SHAREHOLDERS' DEFICIT Current liabilities Current portion of long-term debt Accounts payable Accrued payroll and benefits Liability for guest loyalty programs Accrued expenses and other 324 605 799 677 655 3,060 3,457 1,657 891 6 557 817 666 629 2,675 3,147 1,475 912 Long-term debt Liability for guest loyalty programs Other noncurrent liabilities Shareholders' deficit Class A Common Stock Additional paid-in-capital Retained earnings Treasury stock, at cost Accumulated other comprehensive loss 5 2,802 4,286 (9,223) (70) (2,200) 6,865 5 2,716 3,837 (7,929) (44) (1,415) 6,794 See Notes to Consolidated Financial Statements