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Buffalo Limited owes $260,000 to Splish Brothers Inc. on a 10-year, 11% note due on December 31, 2020. The note was issued at par. Because

Buffalo Limited owes $260,000 to Splish Brothers Inc. on a 10-year, 11% note due on December 31, 2020. The note was issued at par. Because Buffalo is in financial trouble, Splish Brothers Inc. agrees to extend the maturity date to December 31, 2022, reduce the principal to $220,000, and reduce the interest rate to 4%, payable annually on December 31. The market rate is currently 4%. Buffalo prepares financial statements in accordance with IFRS. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, prepare the journal entries on Buffalos books on December 31, 2020, 2021, and 2022. (Hint: Refer to Chapter 3 for tips on calculating.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

choose a transaction date Dec. 31, 2020Dec. 31, 2021Dec. 31, 2022

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date Dec. 31, 2020Dec. 31, 2021Dec. 31, 2022

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date Dec. 31, 2020Dec. 31, 2021Dec. 31, 2022

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date Dec. 31, 2020Dec. 31, 2021Dec. 31, 2022

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

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