LLB Industries borrowed $206,000 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. 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 $206,000and to pay interest based on a floating interest rate and rates reset at the beginning of each period.Floating (SOFR) settlement rates were 10% at January 1, 8% at March 31, and 6% at June 30, 2024. The fair values of the swap arequotes obtained from a derivatives dealer. Those quotes and the fair values of the note are as indicated below. The additionalrise in the fair value of the note (higher than that of the swap) on June 30 was due to investors' perceptions that thecreditworthiness of LLB was improving. Assume LLB uses the shortcut method.Fair value of interest rate swapFair value of note payableRequired 1No1Required:1. Calculate the net cash settlement at June 30, 2024.2. Prepare the journal entries on June 30, 2024, to record the interest and necessary adjustments for changes in fair value.Complete this question by entering your answers in the tabs below.23Required 24DateJune 30, 2024Prepare the journal entries on June 30, 2024, to record the interest and necessary adjustments for changes in fair value.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.General JournalJune 30, 2024June 30, 2024June 30, 2024Interest expenseCashCashJanuary 1$ 10,165Interest expenseX Answer is complete but not entirely correct.Interest rate swapInterest expenseMarch 31Interest expenseNotes payable$ 6,772$ 230,000< Required 1✓✓>>33June 30$ 11,994$ 250,000✓Required 2>Debit5,750 →1,150✔September 30$ 5,222$ 1356,244 X972 XCredit5,750✔1,1506,244972 X

An interest rate swap refers to the agreement between two parties to exchange interest payment…

Answered: Required: 1. Calculate the net cash…

Required: 1. Calculate the net cash settlement at June 30, 2024. 2. Prepare the journal entries on June 30, 2024, to record the 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

Lewiston Company reports the following trial balance on December 31, 2020: Account title Debit Credit Cash $30,000 Investments 55,500 Account Receivable $12,000 Allowance for uncollectable $3,000 Prepaid rent $8,000 $10,000 $40,000 $29,500 Inventories Land Patent Account Payable $2,000 $6,000 Unearned Revenue Bond Payable $15,000 Common Stock $72,000 Retained Earning $37,000 Total $135,000 $135,000 Page 3 of 6
Required: List any corrections that need to be made. Errors can be in classification, lack of disclosure, format, or terminology. Eldorado Bhd. Balance Sheet For the Year Ended June 30, 2019 Assets Current Assets: RM 37,000 62,000 17,000 RM116,000 Accounts Receivable Merchandise Inventory Cash Investments: Marketable Securities Treasury Stock RM 18,000 4,000 22,000 Tangible Assets: Buildings Less: Reserve for Depreciation RM194,000 (34,000) 160,000 Other Assets: Unamortized Portion of Bond Payable Discount 3,000 RM301.000 Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Bank Note Payable (due 6/1/2022) RM 26,000 22,000 RM 48,000 Long-Term Liabilities: Bonds Payable 112,000 Capital Stock: Common Stock Earned Surplus RM 49,000 92,000 141,000 RM301.000
Please answer and guide in detail. Thanks.
choose the correct letter of answer based on the picture attached: How much is the total assets of Jasmine, Inc. in 2019? a. P 11,179,785 b. P 6,500,285 c. P 6,724,785 d. P 4,522,500 8. How much cash dividend was declared and paid in 2019? * a. P 200,000 b. P 300,000 c. P 400,000 d. P 500,000
CLASSIFY EACH OF THE FOLLOING AS ONE OF THE FOLLOWING: a) cash b) cash equivalent c) other current asset d) noncurrent asset e) current liability f) long-term liability aa) perosnal check from customer bb) cash held in a fund, the fund is expected to accrue interst for three years cc) one year treasury bill purchased two months before maturity date dd) compensating balance held aginst long term debt, where funds are legally restricted from withdrawal ee) negative cash balance due to outstanding checks exceeding cahs on deposit (this is the only accout with this bank) ff) travel advance of cash to an employee for business travel gg) deposit in a money market fund with a two month maturity date hh) cash depsoited in a 5 year bank sinking fund
Which of the following is a cash inflow? Question 7 options: Mortgage balance in 2019 is $200,000, and in 2018 was $50,000 Building balance in 2019 is $180,000 and in 2018 was $150,000 Equipment balance in 2019 in $30,000 and in 2018 was $5,000 Accounts receivable balance in 2019 is $20,000 and in 2018 was $5,000
2022 January 1- The partners decide to liquidate the partnership. They have the following balances: Cash $93,667 Accounts Receivable $4 500 Equipment $ 46,250 Accumulated Depreciation $ 25 000 Accounts Payable $4417 The partners were able to collect $3 500 of the accounts receivable and sell the equipment for $57,250 a) Record all journal entries to dissolve the partnership in the following order. i) Record the collection of the A/R and sale of the equipment. You need to close out the A/R, Equipment and Accumulated Amortization Accounts. There will be either a Gain on Disposal or Loss on Disposal of Assets account needed to balance the journal entry. ii) Allocate the Gain or Loss on Disposal to the two partners capital accounts. iii) Pay off any outstanding liabilities. iv) Pay out the Capital balances to the remaining partners from the Bank account. Do the balance sheet on the left to help you determine the new Bank balance and the final Capital balances.
Question Content Area A company reported the following information: Interest receivable, December 31, 2023: $8,000 Interest receivable, December 31, 2022: $11,500 Interest revenue for 2023: $16,000 Interest receivable, December 31, 2023 $8,000 Interest receivable, December 31, 2022 11,500 Interest revenue for 2023 16,000 How much cash was received for interest during 2023?
a) Calculate the non-current asset additions for the year{Hint: you will need to complete a T account to reconcile the movement in the net bookvalue of the non-current asset balance. The additions will be the unexplained movement} b) Prepare the operating activities and investing activities sections of the Statement of cashflows for the year ended 30 June 2021 c) Using your answer to part b) comment on the quality of the business’s profits
T4.
4. Complete the following amortization schedule: Cash Received 0 Dates Jan 1, 2022 Jul 1, 2022 $ Jan 1, 2023 Jul 1, 2023 Jan 1, 2024 11 II 11 Interest Income 0 $ $ $ $ Amortized Amount 0 $ $ $ LA LA Carrying Amount $ $ $
How does Interest Payable impact Declan's Designs' 2022 Statement of Cash Flows? Question 22 options: The periodic change in Interest Payable is added in Cash Flows from Investing The periodic change in Interest Payable is subtracted in Cash Flows from Financing The periodic change in Interest Payable is subtracted in Cash Flows from Operations The periodic change in Interest Payable is added in Cash Flows from Financing The periodic change in Interest Payable is added in Cash Flows from Operations The periodic change in Interest Payable is subtracted in Cash Flows from Investing The periodic change in Interest Payable is not included on the Statement of Cash Flows