On January 2, 20X7, Tristar Bank determined it was probable that a \(\$ 400,000\) note receivable from Johnson Corporation was unlikely to be paid in full at maturity. The note had been issued December 31, 20X2, and will mature on December 31, 20X8. The note pays interest of 8 percent per year each December 31. After reviewing all available evidence at January 2, 20X7. Tristar Bank determined it was probable that Johnson Corporation would pay back only \(\$ 250,000\) of the principal at maturity. As a result, Tristar Bank decided that the loan was immediately impaired. Interest at 8 percent on the original value of the note will continue to be paid until maturity.

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Prepare the journal entries (if any) by Tristar Bank and Johnson Corporation at January 2, 20X7, December 31, 20X7, and December 31, 20X8.