Unrealized holding gains and losses: An unrealized gain is a profit recorded on paper results from the investment. It occurs when shares prices increase after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of increase in share price is recorded as an unrealized gain.
An unrealized loss is a loss recorded on paper results from the investment. It occurs when shares prices decrease after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of decrease in share price is recorded as an unrealized loss.
Interest rate swap contract: It is an agreement between the two parties who are in contract, where one party chooses to pay a variable rate or a fixed rate agreed in advance for a predetermined period of time. Vice-verse, same is applicable for the other party in the contract.
(a1) To record: To record the journal for the swap.
Given information: All the information related to M Corp. is provided in the question document.
(a2) To determine and record: To record the journal for debt interest payment.
Given information: All the information related to M Corp. is provided in the question document.
(a3) To prepare: To prepare the journal the settlement of the semi-annual swap amount receivables.
Given information: All the information related to M Corp. is provided in the question document.
(a4) To prepare: To prepare the journal for the fair value of the debt.
Given information: All the information related to M Corp. is provided in the question document.
(a5) To prepare: To prepare the
(b) To determine: To determine the amount reported on the
Given information: All the information related to M Corp. is provided in the question document.
(c) To determine: To determine the amount reported on the balance sheet and income statement related to the debt and swap.
Given information: All the information related to M Corp. is provided in the question document.
(d) To determine: To determine the amount reported on the balance sheet and income statement related to the debt and swap on.
Given information: All the information related to M Corp. is provided in the question document.
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