Refer to the note issued by Coldwell AG in BE14.9. During 2022, Coldwell experiences financial difficulties. On January 1, 2023, Coldwell negotiates a modification of the terms of the note. Under the modification, Flint Hills Bank agrees to reduce the face value of the note to €90,000 and to extend the maturity date to January 1, 2027. Annual interest payments on December 31 will be made at a rate of 8%. Coldwell’s market interest rate at the time of the modification is 12%.

Prepare Coldwell’s entries for 

(a) The modification on January 1, 2023, 

(b) The first interest payment date on December 31, 2023.