Swifty Corp. owes $269,000 to Nash Trust. The debt is a 10-year, 12% note due December 31, 2020. Because Swifty Corp. is in financial trouble, Nash Trust agrees to extend the maturity date to December 31, 2022, reduce the principal to $215,000, and reduce the interest rate to 7%, payable annually on December 31.

(a)		Prepare the journal entries on Swiftys books on December 31, 2020, 2021, 2022.
(b)		Prepare the journal entries on Nash Trusts books on December 31, 2020, 2021, 2022.

(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.)