Question
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
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Valuation For Accountants A Short Course Based On IFRS
Authors: Stephen Lynn
1st Edition
9811503567, 9789811503566
