On January 1. 2021, LLB Industries borrowed $210,000 from Trust Bank by issuing a two-year.12% note, with interest payable quarterly. LLB 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 debt to Increase. The agreement called for the company to receive payment based on a 12% fixed interest rate on a notional amount of $210,000 and to pay interest based on a oating interest rate. The contract called for cash settlement of the net interest amount quarterly. Floating {LIBORJ settlement rates were 12% at January 1, 10% at March 31, and 8% at June 30. 2021. The fair values of the swap are quotes obtained from a derivatives deaier, Those quotes and the fair values of the note are as follows: Ianuary 1 March 31 June 38 Fair value of interest rate Swap 6 $ 6,460 $ 11,694 Fair value of note payable $ 210,966 $ 216,480 5 221,694 Required: Prepare thejournal entries through June 30. 2021, to record the issuance of the note, Interest. and necessary adjustments for changes in fair value. (If no entry is required for a transacu'anfevent, select "Na jaurnal entry required\" in the first account eld. Round your intermediate and final answers to the nearest whole dollar.) _ 1. January 01, Record the issuance of the note. 2. March 31, Record the interest. 3. March 31, Record the net cash settlement, accrued interest on the swap, and change in fair value of the derivative. 4. March 31, Record the change in fair value of the note due to interest. 5. june 30, Record the interest. 6. June 30, Record the net cash settlement, accrued interest on the swap, and change in fair value of the derivative