please answer 5, 6, & 7. and if you can answer these ones I've missed that'd be great BUT PLEASE ANSWER 5, 6, & 7 IF NOTHING ELSE

On January 1, 2021, Labtech Circuits borrowed $128,400 from First Bank by issuing a three-year, 8% note, payable on December 31, 2023. Labtech wanted to hedge the risk that general interest rates will decline, causing the fair value of its debt to increase. Therefore, Labtech entered into a three-year interest rate swap agreement on January 1, 2021, and designated the swap as a fair value hedge. The agreement called for the company to receive payment based on an 8% fixed interest rate on a notional amount of $128,400 and to pay interest based on a floating interest rate tied to LIBOR. The contract called for cash settlement of the net interest amount on December 31 of each year. Floating (LIBOR) settlement rates were 8% at inception and 9%.7%, and 7% at the end of 2021, 2022, and 2023, respectively. 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 2021 Fair value of interest rate swap Fair value of note payable 2021 $ (2,000) $126,400 December 31 2022 $ 1,200 $129,600 2023 $ @ $128,400 $128,400 5. Calculate the book values of both the swap account and the note in each of the three years. 6. Calculate the net effect on earnings of the hedging arrangement in each of the three years. (Ignore income taxes.) 7. Suppose the fair value of the note at December 31, 2021, had been $127.000 rather than $126,400 with the additional decline in fair value due to investors' perceptions that the creditworthiness of Labtech was worsening. How would that affect your entries to record changes in the fair values? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Calculate the net effect on earnings of the hedging arrangement in each of the three years. (Ignore income taxes.) (Negative amounts should be indicated by a minus sign. Round your intermediate values and final answers to the nearest whole dollar.) Net effect on earnings 2021 2022 2023 5. Calculate the book values of both the swap account and the note in each of the three years. 6. Calculate the net effect on earnings of the hedging arrangement in each of the three years (Ignore income taxes.) 7. Suppose the fair value of the note at December 31, 2021, had been $127.000 rather than $126,400 with the additional decline in fair value due to investors' perceptions that the creditworthiness of Labtech was worsening How would that affect your entries to record changes in the fair values? X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Requireg 5 Required 6 Required 7 Calculate the book values of both the swap account and the note in each of the three years. (Round your intermediate values and final answers to the nearest whole dollar.) Swap Balance IS 0 X Credit Note Balance S 126 400 Credit Date December 31. 2021 December 31 2022 December 31 2023 Do 1$ 1.200 Debit $ 129 600 Credit 00 $ Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Suppose the fair value of the note at December 31, 2021, had been $127,000 rather than $126,400 with the additional decline in fair value due to investors' perceptions that the creditworthiness of Labtech was worsening. How would that affect your entries to record changes in the fair values? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less View transaction list Journal entry worksheet Record the interest. Note: Enter debits before credits. Date General Joumal Debit Credit December 31 2021 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Suppose the fair value of the note at December 31, 2021, had been $127,000 rather than $126,400 with the additional decline in fair value due to investors' perceptions that the creditworthiness of Labtech was worsening. How would that affect your entries to record changes in the fair values? (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Show less A View transaction list Journal entry worksheet 1 3 GN Record the net cash settlement, accrued interest on the swap, and change in fair value of the derivative. Note: Enter debits before credits. General Journal Debit Credit Date December 31 2021 Required 1 Required 2 Required 3 Suppose the fair value of the note at December 31, 2021, had been $127,000 rather than $126,400 with the additional decline in fair value due to investors' perceptions that the creditworthiness of Labtech was worsening. How would that affect your entries to record changes in the fair values? (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Show less A View transaction list Journal entry worksheet Record the change in fair value of the note due to interest. Note: Enter debits before credits. General Joumal Debit Credit Date December 31 2021 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Prepare the journal entries during 2022 to record interest, net cash interest settlement for the interest rate swap, 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 final answers to the nearest whole dollar) No Date General Journal Debit Credit 1 December 31, 202 Interest expense 18,900 Cash 18,900 2 December 31, 2021 Cash 1,284 > > Interest expense 1,284 X 3 December 31, 202 Interest expense 3,200 X Notes payable 3,200 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Prepare the journal entries during 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.) No Credit Date General Journal Debit 128.400 1 January 01, 2021 Cash Notes payable 128,400 2 10,272 December 31, 202 Interest expense Cash 10,272 3 December 31, 202 Interest expense 1,284 Cash 1.284 4 December 31, 202 Notes payable 2,000 Interest expense 2,000