1.Record the investment

2.Record the interest

3.Record the cash net

4. Record chainge in fair value of the derivative

5. Record change in fair value of the investment

6. Record the interest

7. Record the net cash settlement

8. Record the change in fair value of the derivative

9. Record the change in fair value of the investment

On January 1, 2021, S&S Corporation invested in LLB Industries negotiable two-year, 12% notes, with interest receivable quarterly The company classified the investment as available for sale. S&S entered into a two-year interest rate swap agreement on January 1, 2021 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 investment to increase. The agreement called for the company to make payment based on a 12% fixed interest rate on notional amount of $250,000 and to receive interest based on a floating interest rate. The contract called for cash settlement of the net interest amount quarterly Floating (LIBOR) settlement rates were 12% at January 1, 10% at March 31, and 8% June 30, 2021. The fair values of the swap are quotes obtained from a derivatives dealer. Those quotes and the fair values of the investment in notes are as follows: Fair value of interest rate swap Fair value of the investment in notes January 1 @ $ 250, eee March 31 $ 6,972 $ 256,972 June 30 $ 12,394 $ 262,394 Required: 1. Calculate the net cash settlement at March 31 and June 30, 2021 2. Prepare the journal entries through June 30, 2021, to record the investment in notes, interest, and necessary adjustments for changes in fair value Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the net cash settlement at March 31 and June 30, 2021. March 31 June 30 Net cash settlement Required 2 >