Derek Morgan Company raised $14 million cash on October 1, 2016, to provide working capital for year-end production. Derek issued a $10 million, four-month, 12% promissory note where interest is payable at maturity and raised the remaining $4 million by signing a $4.4 million, zero-interest bearing note due in one year. 

a. Prepare the journal entries to record the above events. lomy 

b. Prepare the adjusting entries, assuming a December 31, 2016 year-end, related to the notes above.