Interest Rate Swap: Journal Entries Refer to the data in E9.8. Assume that the floating rate is adjusted on October 1 and that default did not occur. Assume also that on September 30, 2014, the swap's fair value is a $75,000 liability to Queen and a $33,000 asset to Prince.
Required
Prepare the journal entries made by Queen and Prince on September 30, 2014, when the first payments pursuant to the swap are made. Do not record the interest on the underlying debt or mark it to market.