Skysong Corp. owes $280,000 to Concord Trust. The debt is a 10-year, 12% note due December...

Skysong Corp. owes $280,000 to Concord Trust. The debt is a 10-year, 12% note due December 31, 2020. Because Skysong Corp. is in financial trouble, Concord Trust agrees to extend the maturity date to December 31, 2022, reduce the principal to $225,000, and reduce the interest rate to 6%, payable annually on December 31.

(b)Prepare the journal entries on Concord Trust’s books on December 31, 2020, 2021, 2022.

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