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Exercise 14-27 Splish Corp. owes $283,000 to Blossom Trust. The debt is a 10-year, 12% note due December 31, 2017. Because Splish Corp. is in

Exercise 14-27 Splish Corp. owes $283,000 to Blossom Trust. The debt is a 10-year, 12% note due December 31, 2017. Because Splish Corp. is in financial trouble, Blossom Trust agrees to extend the maturity date to December 31, 2019, reduce the principal to $236,000, and reduce the interest rate to 6%, payable annually on December 31. (a) Prepare the journal entries on Splish's books on December 31, 2017, 2018, 2019 (b) Prepare the journal entries on Blossom Trust's books on December 31, 2017, 2018, 2019

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