On January 1, 2024, LLB Industrles borrowed $220,000 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, 2024, and designated the swap as a falr value hedge. Its Intent was to hedge the rlsk that general Interest rates will decline, causing the falr value of its debt to increase. - The agreement called for the company to recelve payment based on a 10% fixed interest rate on a notional amount of $220,000 and to pay interest based on a floating Interest rate. The contract called for cash settlement of the net Interest amount quarterly and rates reset at the beginning of each perlod. - Floating (SOFR) settlement rates were 10% at January 1,8% at March 31, and 6% at June 30 and September 30, 2024. The falr values of the swap are quotes obtained from a derlvatlves dealer. Those quotes and the falr values of the note are as Indicated below. Assume LLB uses the shortcut method. Required: 1. Calculate the net cash settlement at March 31, June 30, and September 30, 2024. 2 Prepare the Journal entrles through September 30, 2024, to record the Issuance of the note, Interest, and necessary adjustments for changes in falr value. 3. Calculate the net cash settlement at March 31 and June 30, 2024, assuming that rates reset in arrears. 4. Prepare the Journal entrles through June 30,2024 , assuming that rates reset In arrears, to record the Issuance of the note, Interest, and necessary adjustments for changes In falr value. Complete this question by entering your answers in the tabs below. Calculate the net cash settlement at March 31, June 30, and September 30, 2024