Given information: Rothschild Chair Company, Inc., was indebted to First Lincoln Bank under a $20 million, 10% unsecured note. The note was signed 1/1/2008, and was due on 12/31/2019. Annual interest was last paid on 12/31/2014. At 1/1/2016, Rothschild was experiencing severe financial difficulties and negotiated a restructuring of the terms and debt agreement.

Fist Lincoln Bank agreed to a) forgive the interest accrued from last year, b) reduce the remaining four interest payments to $1 million each, and c) reduce the principle to $15 million.

Bank note $ 20,000,000 Bank note interest 10% Fair market value of land $ 16,000,000 Book value of land 13,000,000 Remaining 4 interest payments 1,000,000 Principal reduced to 15,000,000 Settlement of debt at maturity date 27,775,000

I need help making Journal entries for Debits to Cash and Notes Receivable and Credit to Interest Revenue.