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Ulting Ltd. owes Sleazy Finance Co. $150,000 for a 3-year, 10% note, issued at par and due on December 31, 2021. Interest was paid annually

Ulting Ltd. owes Sleazy Finance Co. $150,000 for a 3-year, 10% note, issued at par and due on December 31, 2021. Interest was paid annually each December 31. Ulting Ltd. is now in financial difficulties, so Sleazy Finance Co. agrees to extend the note’s maturity date to December 31, 2023, reduce the principal to $130,000, and reduce the interest rate to 9%. The market rate is currently 5%. Both companies follow IFRS. 


Required:

Prepare all related journal entries for Ulting Ltd. for 2021, 2022, and 2023.

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