On January 1, 2021 LLB Industries borrowed $200,000 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, 2021. and designated the swop as a fair value hedge. Its intent 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 $200.000 and to pay interest based on a floating interest rate. The contract called for cash settlement of the net interest amount quarterly Floating (LIBOR) settlement rates were 10% at January 1.8% at March 31, and 68 at June 30, 2021. The fair values of the swap are quotes obtained from a derivatives dealer. Those quotes and the fair values of the note are as follows: January 1 Fair value of interest rate swap Fair value of note payable March 31 $ 6,472 $ 286,472 June 30 $ 11,394 $ 211,394 $ 280,000 Required: Prepare the journal entries through June 30, 2021, to record the issuance of the note, Interest, and necessary adjustments for changes In fair value (Round your intermediate and final answers to the nearest whole dollar. If no entry is required for a transaction/event. select "No journal entry required in the first account field.) Viewractions View journal entry worksheet NO General Journal Date January 01 Credit 1 Cash Notes payable Debit 200,000 200,000 2 March 31 Interest expense Cash 5,000 5.000 3 March 31 Cash Interest expense 1,000 1,000 March 31 Interest rate swap 6,472 6.472 June 30 Interestepense 5.000 5,000