h On January 1, 2024, LLB Industries borrowed $228,000 from Trust Bank by issuing a two-year, 10% note, with interest payablequarterly.• LLB entered into a two-year interest rate swap agreement on January 1, 2024, and designated the swap as a fair value hedge. Itsintent 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 receive payment based on a 10% fixed interest rate on a notional amount of $228,000and to pay interest based on a floating interest rate. The contract called for cash settlement of the net interest amount quarterlyand rates reset at the beginning of each period.• Floating (SOFR) settlement rates were 10% at January 1, 8% at March 31, and 6% at June 30 and September 30, 2024. The fairvalues of the swap are quotes obtained from a derivatives dealer. Those quotes and the fair values of the note are as indicatedbelow. Assume LLB uses the shortcut method.Fair value of interest rate swapFair value of note payableJanuary 1$0$ 228,000March 31$ 7,872$ 235,872June 30$ 14,334$ 242,334September 30$ 12,365$ 240,365Required: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 adjustmentsfor 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.

Answered: Image /qna-images/answer/736706fc-84fd-45e6-a339-18fa05fce0d9.jpg

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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Define Will.
1 . A n g e l i n e M a e d e l a C r u z h a s j u s t g r a d u a t e d f r o m c o l l e g e a n d n e e d s t o b u y a c a r t o c o m m u t e t o w o r k . S h e e s t im a t e s t h a t s h e ca n a f fo r d t o p a y a b o u t P 1 4 , 5 0 0 . 0 0 p e r m o n t h f o r a l oa n o r l e a s e a n d h a s a b o u t P 2 0 0 , 0 0 0. 0 0 i n s a v i n g s t o u s e f o r a d o w n p a y m e n t . • D e v e l o p a p l a n t o g u i d e h e r t h r o u g h h e r f i r s t c a r - b u y i n g e x p e r i e n c e , i n c l u d i n g r e s e a r c h i n g c a r t y p e , d e c i d i n g w he t h e r t o b u y a n e w o r u s e d c a r , n e g o t i a t i n g t h e p r i c e a n d t e r m s , a n d f i n a n c in g t h e t r a n s a c t i o n 2 . F i n d t h e m o n t h l y m o r t g a g e p a y m e n t s o n t h e…
1 . W h a t a r e t h e r o l e s o f m a n a g e m e n t a n d t h e a u d i t o r i n t h e p r e p a r a t i o n a n d i n t e g r i t y o f t h e f i n a n c i a l s t a t e m e n t s ? 2 . W h y d o s o m e u n q u a l i f i e d o p i n i o n s h a v e e x p l a n a t o r y p a r a g r a p h s ? 3 . W i l l t h e a c c o u n t a n t e x p r e s s a n o p i n i o n o n r e v i e w e d f i n a n c i a l s t a t e m e n t s ? D e s c r i b e t h e a c c o u n t a n t ’ s r e p o r t f o r r e v i e w e d f i n a n c i a l s t a t e m e n t s . 4 . W h y a r e n o t e s t o s t a t e m e n t s n e c e s s a r y ? 5 . W h a t i s t h e r e l a t i o n s h i p b e t w e e n t h e a c c o u n t i n g e q u a t i o n a n d t h e d o u b l e - e n t r y s y s t e m o f r e c o r d i n g t r a n s a c t i o n s ?
can you answer d
Egyghh gyu
what about quesitons E and F?
Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2021. At the beginning of May, Piper's ledger showed Cash $7,000; Accounts Receivable $1,900; Inventory $3,500; Common Shares $7,800; and Retained Earnings $4,600. Piper Specialty has experienced a return rate of 2% of sales and uses a perpetual inventory system. Purchased merchandise on account from Depot Wholesale Supply Ltd. for $5,340, terms 1/10, n/30, FOB shipping point. May 3 Freight charges of $137 were paid by the appropriate party on the merchandise purchased on May 1. Sold merchandise on account to Yip Company for $3,500, terms n/30, FOB destination. The cost of the merchandise was $2,400. 7 Freight charges of $86 were paid by the appropriate party on the May 4 sale. 8. Received a $140 credit from Depot Wholesale Supply when merchandise was returned. Paid Depot Wholesale Supply in full. 11 Purchased supplies for $390 cash. 14 Received payment in full from Yip Company for…
Use the following accounts; Cash Foreign exchange gain Foreign exchange loss Capital Bank Short-term investments Loss on sale of short-term investment Gain on sale of short-term investment RA established his own company, r@ktas Co. The following transactions are the events that occurred during December 2018, the company's first month: Date 12/1 The owner invested $ 200,000 cash for capital. 12/5 r@ktas Co., opened deposit account on Don't Trust Bank and put 2.000 Euro (Exchange rate was 1 Euro= 1,5 Dollar) 12/10 The Company purchased short-term investment with cash for $2,500. 12/18 The Company sold short-term investment with cash for $2.000 Note: • Exchange rate was 1 Euro= 1,4 Dollar at the end of the period. Requirements: 1- Give the journal entry for each transaction. 2- Post each transaction to Taccounts.
What is the solution to 0.5x - 2 < 5.5? O A. X < 7 о В. х< 9 С. X < 13 D. x < 15
Concept of Reconcilation statement with an example .
remain dwlse
what is a P&L