Problems. Show all computations and make journal entries in proper form, as appropriate. 1. Derek Morgan Company raised $14 million cash on October 1, 2016, to provide working capital for year-ene production. De rek issued a S 10 million, four-rnonth 12% promissory note where interest is payable at maturi 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. b. Prepare the adjusting entries, assuming a December 31, 2016 year-end, related to the notes above