On January 1, 2021, Sumrall Co. signed a P6,000,000, 9%, note payable, after receiving the loan from Micah Bank. The note matures on December 31, 2024, and the interest is paid every December 31. Sumrall was able to pay the interest in 2021, 2022 and 2023. However, the entity was not able to pay the interest and the principal on December 31, 2024. Sumrall experienced a severe cash flow problem during the year due to bad business decisions. Micah allowed Sumrall to re-negotiate the terms of the loan. 

Prepare the journal entry/ies on December 31, 2024 given the following independent scenarios:
1. Sumrall agrees to transfer the land to Micah to satisfy the loan, including the unpaid interest. The land has a carrying amount of P5,000,000 in the books of Sumrall, but has a fair value of P7,000,000 on the date of the transfer.
2. Sumrall agrees to issue 200,000, P10 par ordinary shares to Micah to pay the loan, including the unpaid interest. The shares have a fair value of P40 per share on this date.