At January 1, Year 3, Peyton Hoists, Inc. owed Finfund $13 million, under a 10% note due December 31, Year 4. Interest was paid last on December 31, Year 1. Peyton was experiencing severe financial difficulties and asked Finfund to modify the terms of the debt agreement. After negotiation, Finfund agreed to: Forgive the interest accrued for the year just ended. Reduce the remaining two years' interest payments to $0.9 million each. Reduce the principal amount to $12.2 million. Required: Prepare the journal entries by Finfund necessitated by the restructuring of the debt at: 1. January 1, Year 3 2. December 31, Year 3 3. December 31, Year 4