At January $1,2024,$ Clayton Hoists Incorporated owed Third BancCorp $$20$ million, under a $10\%$ note due December $31,2025.$ Interest

was paid last on December $31,2022.$ Clayton was experiencing severe financial difficulties and asked Third BancCorp to modify the

terms of the debt agreement. After negotiation Third BancCorp agreed to do the following:

Note: Use appropriate factor$($s$)$ from the tables provided. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Forgive the interest accrued for the year just ended.

Reduce the remaining two years' interest payments to $$1$ million each.

Reduce the principal amount to $$19$ million.

Required:

$1-3.$ Prepare the journal entries by Third BancCorp necessitated by the restructuring of the debt at January $1,2024,$ December $31,$

$2024$ and December $31,2025.$

Note: Enter your answers in whole dollars. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the

first account field. Round your final answers to nearest whole dollar amount.

Journal entry worksheet

Record the restructuring of the debt at January $1.$

Note: Enter debits before credits.