On January 1, 2021, LLB Industries borrowed $300,000 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 $300,000 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 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 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 $ 8,200 $ 308, 200 June 30 $ 14,394 $ 314,394 $ 300,000 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to the nearest whole dollar.) Date General Journal Credit No 1 Debit 300,000 January 01 Cash Notes payable 300,000 2. March 31 9,000 Interest expense Cash 9,000 3 March 31 Cash Interest rate swap Interest expense 1,500 8,200 9,700 4 March 31 8,200 Interest expense Notes payable 8,200 5 June 30 6,194 X Interest expense Notes payable 6,194 X June 30 Cash Interest rate swap Interest expense 3,000 6,194 9,194 X 7 June 30 Interest expense Notes payable