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Present the journal entries to record the following transactions. (1) The entry.if any, to record the swap on December 31, 2020. (2) The entry to

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Present the journal entries to record the following transactions. (1) The entry.if any, to record the swap on December 31, 2020. (2) The entry to record the semiannual debt interest payment on June 30, 2021. (3) The entry to record the settlement of the semiannual swap amount receivables at 8.0%, less amount payable at LIBOR, 7.0% (4) The entry to record the change in the fair value of the debt on June 30, 2021. (5) The entry to record the change in the fair value of the swap at June 30, 2021. Account Titles and Explanation Debit Credit 2020 No Entry No Entry 2021 Interest Expense Cash (To record the semiannual debt interest payment.) 2021 Cash Interest Expense (To record the settlement of the semiannual swap amount.) 2021 Notes Payable Unrealized Holding Gain or Loss -Income (To record the change in fair value of the debt.) Unrealized Holding Gain or Loss -Income 2021 Swap Contract (To record the change in fair value of the swap.) Terthorlend Modi On December 31, 2020, Cullumber Corp. had a $12,300,000, 8.0% fixed-rate note outstanding, payable in 2 years. It decides to enter into a 2-year swap with Chicago First Bank to convert the fixed-rate debt to variable-rate debt. The terms of the swap indicate that Cullumber will receive interest at a fixed rate of 8.0% and will pay a variable rate equal to the 6-month LIBOR rate based on the $12,300,000 amount. The LIBOR rate on December 31, 2020, is 7.0%. The LIBOR rate will be reset every 6 months and will be used to determine the variable rate to be paid for the following 6-month period. Cullumber Corp, designates the swap as a fair value hedge. Assume that the hedging relationship meets all the conditions necessary for hedge accounting. The 6-month LIBOR rate and the swap and debt fair values are as follows. 6-Month LIBOR Rate Swap Fair Value Debt Fair Value December 31, 2020 (185.100) 12,357,400 Date 7.0 % 7.5 % 6.0 % $12.300,000 12,114,900 June 30, 2021 December 31, 2021 57,400 (a) Your answer is partially correct Present the journal entries to record the following transactions (1) (2) (3) The entry, if any, to record the swap on December 31, 2020, The entry to record the semiannual debt interest payment on June 30, 2021 The entry to record the settlement of the semiannual swap amount receivable at 8.0% less amount payable at LIBOR 7.0% The entry to record the change in the fair value of the debt on June 30, 2021 The entry to record the change in the fair value of the swap at June 30, 2021 (4) 15)

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