Problem 1 On August 31, ABC Co. partially refunded $900,000 of its outstanding 10% note payable made one year ago to the I-Fleecem State Bank by paying $900,000 plus $90,000 interest, having obtained the $990,000 by using $262,000 cash and signing a new one- year $800,000 note discounted at 9% by the bank. Instructions 1. Make the entry to record the partial refunding. Assume ABC Co. makes reversing entries when appropriate. 2. Prepare the adjusting entry on December 31, assuming straight-line amortization of the discount. 3. What effect did the interest expense have on reported net income and cash flows for the period ending December 31