Daniel Perkins is the sole shareholder of Cheyenne Inc., which is currently under protection of the U.S. bankruptcy court. As a "debtor in possession," he has negotiated the following revised loan agreement with United Bank. Cheyenne Inc.'s $540,000, 11%, 10-year note was refinanced with a $540,000, 696, 10-year note. (a) What is the accounting nature of this transaction? Extinguishment of debt (b) Prepare the journal entry to record this refinancing: (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. 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. (1) On the books of Cheyenne Inc. (2) On the books of United Bank. No. Account Titles and Explanation Debit Credit 1. 2