I have a treasury stock question. My company entered into an agreement to buy out the partner for a total of $$$$. The entry was recorded as follows:
Treasury Stock $$
Note Payable $$

In the second year of the payment plan, payments were suspended for six months. The note agreement was modified at year end to change the prinicipal balance to include interest unpaid. So the principle balance when from the original note amount to a new amount including the interest unpaid. Does this change to the principle balance require the following entry?

Treasury Stock $(amount of interest rolled into principle)
Note Payable $(amount of interest rolled into principle)