Sheridan Corp. currently has an issued debenture outstanding with Abbra Bank. The note has a principal of $5 million, it was issued at face value, and interest is payable at 7%. The term of the debenture was 10 years, and it was issued on December 31,2016 . The current market rate for this debenture is 9%. Sheridan has been experiencing financial difficulties and has asked Abbra Bank to restructure the note. Both Sheridan and Abbra Bank prepare financial statements in accordance with IFRS. It is currently December 31,2023 For each of the following independent situations related to the above scenario, prepare the journal entries that Sheridan and Abbra Bank would make for the restructuring that is described. Abbra Bank agrees to reduce the principal to $1.6 million and require interest only in the third year at 4%, waiving the first 2 years' worth of interest. (Hint: Refer to Chapter 3 for tips on calculating and use the time value of money tables.) Assume that the bank had not previously recognized any loss on impairment. (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 O for the amounts. List all debit entries before credit entries.) On the books of Sheridan Corporation: Account Titles and Explanation Debit Credit On the books of Abbra Bank