At January 1, 2018, Brainard Industries, Inc., owed Second Banc Corp $12 million under a 10% note due Decem ber 31, 2020. Interest was paid last on December 31, 2016. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to: a. Forgive the interest accrued for the year just ended. E 14-34 Troubled debt restructuring: modification of terms Appendix B b. Reduce the remaining two years' interest payments to $1 million each and delay the first payment until December 31, 2019 c. Reduce the unpaid principal amount to $11 million Required: Prepare the journal entries by Brainard Indu stries, Inc., necessitated by the restructuring of the debt at (1) January 1, 2018; (2) December 31, 2019; and (3) December 31, 2020