Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does no On January 1, 2021 Labtech Circuito borrowed 5108.000 from Bank byssung a three-year. 9 note, payable on December 31 2023. Labtech wanted to heage the risk that general terest rates will decline cousing the favoue of its debt to increase. Therefore, Labtece entered into the year interest rate we agreement on January 1, 2021, and designated the swap as a fair value hedge The agreement called for the company to receive payment based on a 9. Fored interest rate on national amount of $108,000 and to pay interest based on a fitng terest rate tied to LIBOR The contract called for cash settlement of the net interest amount on December 31 of each year Floating UBOR settlement rates were 9 atinception and 108 and 8% at the end of 2021 2022 and 2023.respectively. The fair values of the swep se quotes obtained from a derivatives deler Those quotes and the fair values of the note are as follows: January 1 2021 Foire of Lnterest rate ad ofte le December 31 2021 2022 501,0 $1,000 5106,209 $100,000 $100,000 so $100,000 Required: 1. Calculate the net cash sentement at the end of 2021 2022 and 2023 2. Prepare the journies during 2021to record the wence of the note, interest and necessary adjustments for changes in for value 3. Prepare the journal enties during 2022 to record interest.net cash interest settlement for the interest rateswaand necessary sous for changes in fair value 4. Prepare the journal entre during 2023 to record interest, net cash interest settlement for the interest rate swap, necessary adtments for changes in fair value, and repayment of the debt. 5. Calculate the book values of both the swap account and the note in each of the three years 6. Calculate the nat effect on earnings of the hedging arrangement in each of the three years ignore income tas) 7. Suppose the far value of the nate at December 31, 202 had been $107.000 rather than $106 200 with the additional decline in valon du tontor perceptions that the creditworthiness of Labtech was worsening. How would that affect your entries to record changes in the low values Answer is not complete. Complete this question try entering your answers in the tabs below Recured Required Chcement the end of 2021 2022 and 2023. Chegative around thout beindicated by a Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does no On January 1, 2021 Labtech Circuito borrowed 5108.000 from Bank byssung a three-year. 9 note, payable on December 31 2023. Labtech wanted to heage the risk that general terest rates will decline cousing the favoue of its debt to increase. Therefore, Labtece entered into the year interest rate we agreement on January 1, 2021, and designated the swap as a fair value hedge The agreement called for the company to receive payment based on a 9. Fored interest rate on national amount of $108,000 and to pay interest based on a fitng terest rate tied to LIBOR The contract called for cash settlement of the net interest amount on December 31 of each year Floating UBOR settlement rates were 9 atinception and 108 and 8% at the end of 2021 2022 and 2023.respectively. The fair values of the swep se quotes obtained from a derivatives deler Those quotes and the fair values of the note are as follows: January 1 2021 Foire of Lnterest rate ad ofte le December 31 2021 2022 501,0 $1,000 5106,209 $100,000 $100,000 so $100,000 Required: 1. Calculate the net cash sentement at the end of 2021 2022 and 2023 2. Prepare the journies during 2021to record the wence of the note, interest and necessary adjustments for changes in for value 3. Prepare the journal enties during 2022 to record interest.net cash interest settlement for the interest rateswaand necessary sous for changes in fair value 4. Prepare the journal entre during 2023 to record interest, net cash interest settlement for the interest rate swap, necessary adtments for changes in fair value, and repayment of the debt. 5. Calculate the book values of both the swap account and the note in each of the three years 6. Calculate the nat effect on earnings of the hedging arrangement in each of the three years ignore income tas) 7. Suppose the far value of the nate at December 31, 202 had been $107.000 rather than $106 200 with the additional decline in valon du tontor perceptions that the creditworthiness of Labtech was worsening. How would that affect your entries to record changes in the low values Answer is not complete. Complete this question try entering your answers in the tabs below Recured Required Chcement the end of 2021 2022 and 2023. Chegative around thout beindicated by a
