Carla AG issued a 135,000, 4-year, 11% note at face value to Flint Hills Bank on January 1, 2022, and received 135,000 cash. The note requires annual interest payments each December 31. During 2022, Carla experiences financial difficulties. On January 1, 2023, Carla negotiates a modification of the terms of the note. Under the modification, Flint Hills Bank agrees to reduce the face value of the note to 120,150 and to extend the maturity date to January 1, 2027. Annual interest payments on December 31 will be made at a rate of 9%. Carla's market interest rate at the time of the modification is 13%. Prepare Carla's entries for (a) the modification on January 1, 2023. Remove the old note at face value and record the new note in the same journal entry, and (b) the first interest payment date on December 31, 2023. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)