On June 30, 2016, Elgin Company received $50,000 from Foxboro Finance Inc. in exchange for a promissory note. The terms of the note required Elgin to repay Foxboro on June 30, 2018, the principal amount plus interest at 6% per annum compounded semi-annually. 

Due to financial difficulties, Elgin could not make the repayment as scheduled. On June 30, 2018, Foxboro agreed to extend the terms of repayment by one year, to June 30, 2019. However, accounting staff at Foxboro was unaware of the change in repayment terms and did not record the effects of the note restructuring during 2018. The error was discovered on June 30, 2019, when Elgin paid Foxboro $56,275 in fulfillment of the terms of the restructured note. 

Foxboro has a December 31 year-end. No interest had been accrued between the original repayment date and the extended repayment date. 

Required:

Record any adjusting journal entries necessary to correct the error in Foxboro’s accounting for the note receivable from Elgin Company.