Accounting January 1, 2020 WI entered into a two year interest rate swap in with DI Corp. WI received 8% fixed on a notional amount of S4.000.000 and pay variable at prime +1% where prime is set at 7%. WI opts to not to not use hedge accounting for this swap contract January 1. 2021: Prime is reset to 5% on the swan contract The swap contract value is $113 000. January 1. 2022: The swap contract was settled. prepare the journal entry for each item.
Accounting January 1, 2020 WI entered into a two year interest rate swap in with DI Corp. WI received 8% fixed on a notional amount of S4.000.000 and pay variable at prime +1% where prime is set at 7%. WI opts to not to not use hedge accounting for this swap contract January 1. 2021: Prime is reset to 5% on the swan contract The swap contract value is $113 000. January 1. 2022: The swap contract was settled. prepare the journal entry for each item.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Accounting
January 1, 2020 WI entered into a two year
interest rate swap in with DI Corp. WI received
8% fixed on a notional amount of S4.000.000
and pay variable at prime +1% where prime is
set at 7%. WI opts to not to not use hedge
accounting for this swap contract
January 1. 2021: Prime is reset to 5% on the
swan contract The swap contract value is $113
000.
January 1. 2022: The swap contract was settled.
prepare the journal entry for each item.
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