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On January 1, 2024, LLB Industries borrowed $230,000 from Trust Bank by issuing a two-year, 10% note, with interest payable quarterly. - LLB entered into a two-year interest rate swap agreement on January 1,2024, and designated the swap as a fair value hedge. its intent was to hedge the risk that general interest rates will decline, causing the fair value of its debt to increase, - The agreement called for the company to recelve payment based on a 10% fixed interest rate on a notional amount of $230,000 and to pay interest based on a floating interest rate. The contract called for cash settlement of the net interest amount quarterly and rates reset of the beginning of each petiod. - Flooting (SOFR) settlement rates were 10\% at January 1, 8\% at March 31, and 6% at June 30 and 5 eptember 30,2024, The fair values of the swap are quotes obtained from a derivatives dealer. Those quotes and the fair values of the note are as indicated below. Assume Lie uses the shortcut method. required: 1. Calculate the net cash settlement at March 31, June 30, and September 30, 2024 . 2. Prepare the journal entries through September 30,2024 , to record the issuance of the note, interest. and necessary adjustments for changes in tair value. 3. Calculate the net cash settlement at March 31 and June 30, 2024, assuming that rates reset in arrears. 4. Prepare the journal entries through June 30, 2024, assuming that rates reset in arrears, to record the issuance of the note. interest, and necessary adjustments for changes in fair value. tequired: 1. Calculate the net cash settlement at March 31, June 30, and September 30, 2024. 2. Prepare the journal entries through September 30,2024 , to record the issuance of the note, interest, and necessary adjustments for changes in fair value. 3. Calculate the net cash settlement at March 31 and June 30,2024 , assuming that rates reset in arrears. 4. Prepare the journal entries through June 30,2024 , assuming that rates reset in arrears, to record the issuance of the note, interest, and necessary adjustments for changes in fair value. Complete this question by entering your answers in the tabs below. Calculate the net cash settiement at March 31, June 30, and September 30,2024. Complete this question by entering your answers in the tabs below. Prepare the journal entries through September 30,2024 , to record the issuance of the note, interest, and necessary adjustmen changes in fair value. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 5 Record the interest on the note. 6 Record the net cash settlement on the swap. 7 Record change in fair value of the derivative. 8 Record the change in fair value of the note. 9 Record interest on the note. 10 Record the net cash settlement on the swap. 11. Record the change in fair value of the derivative. 12 Record change in fair value of the note. Note : - yournal entry has been entered 1. Calculate the net cash settlement at March 31, June 30, and September 30, 2024. 2. Prepare the journal entries through September 30,2024 , to record the issuance of the note, interest, and necessary adju for changes in fair value. 3. Calculate the net cash settlement at March 31 and June 30, 2024, assuming that rates reset in arrears. 4. Prepare the journal entries through June 30,2024 , assuming that rates reset in arrears, to record the issuance of the note interest, and necessary adjustments for changes in fair value. Complete this question by entering your answers in the tabs below. Calculate the net cash settlement at March 31 and June 30,2024 , assuming that rates reset in arrears. View transaction list 1 Record the issuance of the note. 2 Record the interest. 3 Record the net cash settlement on the swap. 4 Record change in fair value of the derivative. 5 Record change in fair value of the note. 6 Record the interest on the note. 7. Record the net cash settlement on the swap. B Record change in fair value of the derivative. Note : = journal entry has been entered Record entry Clear entry View general journal repare the journal entries through June 30,2024 , assuming that rates reset in arrears, to record the issuan ecessary adjustments for changes in fair value. lote: If no entry is required for a transaction/event, select "No journal entry required" in the first account fie On January 1, 2024, LLB Industries borrowed $230,000 from Trust Bank by issuing a two-year, 10% note, with interest payable quarterly. - LLB entered into a two-year interest rate swap agreement on January 1,2024, and designated the swap as a fair value hedge. its intent was to hedge the risk that general interest rates will decline, causing the fair value of its debt to increase, - The agreement called for the company to recelve payment based on a 10% fixed interest rate on a notional amount of $230,000 and to pay interest based on a floating interest rate. The contract called for cash settlement of the net interest amount quarterly and rates reset of the beginning of each petiod. - Flooting (SOFR) settlement rates were 10\% at January 1, 8\% at March 31, and 6% at June 30 and 5 eptember 30,2024, The fair values of the swap are quotes obtained from a derivatives dealer. Those quotes and the fair values of the note are as indicated below. Assume Lie uses the shortcut method. required: 1. Calculate the net cash settlement at March 31, June 30, and September 30, 2024 . 2. Prepare the journal entries through September 30,2024 , to record the issuance of the note, interest. and necessary adjustments for changes in tair value. 3. Calculate the net cash settlement at March 31 and June 30, 2024, assuming that rates reset in arrears. 4. Prepare the journal entries through June 30, 2024, assuming that rates reset in arrears, to record the issuance of the note. interest, and necessary adjustments for changes in fair value. tequired: 1. Calculate the net cash settlement at March 31, June 30, and September 30, 2024. 2. Prepare the journal entries through September 30,2024 , to record the issuance of the note, interest, and necessary adjustments for changes in fair value. 3. Calculate the net cash settlement at March 31 and June 30,2024 , assuming that rates reset in arrears. 4. Prepare the journal entries through June 30,2024 , assuming that rates reset in arrears, to record the issuance of the note, interest, and necessary adjustments for changes in fair value. Complete this question by entering your answers in the tabs below. Calculate the net cash settiement at March 31, June 30, and September 30,2024. Complete this question by entering your answers in the tabs below. Prepare the journal entries through September 30,2024 , to record the issuance of the note, interest, and necessary adjustmen changes in fair value. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 5 Record the interest on the note. 6 Record the net cash settlement on the swap. 7 Record change in fair value of the derivative. 8 Record the change in fair value of the note. 9 Record interest on the note. 10 Record the net cash settlement on the swap. 11. Record the change in fair value of the derivative. 12 Record change in fair value of the note. Note : - yournal entry has been entered 1. Calculate the net cash settlement at March 31, June 30, and September 30, 2024. 2. Prepare the journal entries through September 30,2024 , to record the issuance of the note, interest, and necessary adju for changes in fair value. 3. Calculate the net cash settlement at March 31 and June 30, 2024, assuming that rates reset in arrears. 4. Prepare the journal entries through June 30,2024 , assuming that rates reset in arrears, to record the issuance of the note interest, and necessary adjustments for changes in fair value. Complete this question by entering your answers in the tabs below. Calculate the net cash settlement at March 31 and June 30,2024 , assuming that rates reset in arrears. View transaction list 1 Record the issuance of the note. 2 Record the interest. 3 Record the net cash settlement on the swap. 4 Record change in fair value of the derivative. 5 Record change in fair value of the note. 6 Record the interest on the note. 7. Record the net cash settlement on the swap. B Record change in fair value of the derivative. Note : = journal entry has been entered Record entry Clear entry View general journal repare the journal entries through June 30,2024 , assuming that rates reset in arrears, to record the issuan ecessary adjustments for changes in fair value. lote: If no entry is required for a transaction/event, select "No journal entry required" in the first account fie

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