On July 1, 2021, Rico Company sold some limited edition art prints to Billion Company for 20,160,000 to be paid on January 1, 2022. The current exchange rate on July 1, 2021, was 105=$l, so the total payment at the current exchange rate would be equal to $192,000. Rico entered into a forward contract with a large bank to guarantee the number of dollars to be received. According to the terms of the contract, if 20,160,000 is worth less than $192,000, the bank will pay Rico the difference in cash. Likewise, if 20,160,000 is worth more than $192,000, Rico must pay the bank the difference in cash. Required: 1. Prepare all necessaryjournal entries on Rico's book at July 1, 2021. 2. Prepare all necessary journal entries on Rico's book at December 31, 2021, assuming that the exchange rate is 100=$1. 3. Prepare all necessaryjournal entries on Rico's book at January 1, 2022. On January 1, 2022. Victory lnc. received a three-year, $1 million loan with interest payments due at the end of each year and the principal to be repaid on December 31. 2024. The interest rate for the first year is the prevailing market rate of 7 percent, and the rate each succeeding year will be equal to the prevailing market rate on January 1 of that year. On January 1, 2022, Victory also entered into an interest rate swap agreement related to this loan and designated this swap as a hedge against fluctuations for its interest payments. Under the terms of the swap agreement, in the years 2023 and 2024. Victory will receive or make a swap payment based on the principal amount of$1 million. lfthe J anuary 1 interest rate is greater than 7 percent. Victory will receive a swap payment for the difference; and if the January 1 interest rate is less than '? percent, Victory will make a swap payment for the difference. The swap payments are made on December 31 of each year. On January 1, 2023, the interest rate is 6 percent. and on January 1. 2024, the interest rate is 8 percent. For purposes of estimating future swap payments, assume that the current interest rate is the best forecast of the future interest rate Required: (Show calculations and round all entries to the nearest dollar.) 1. Make the necessary entries on Victory's books at December 31, 2022. 2. Make the necessary entries on Victory's books at December 31, 2023. 3. Make the necessary entries on Victory's books at December 31. 2024