On January 1, 2018, LLB Industries borrowed $200,000 from Trust Bank by issuing a two-year, 10% note,
Question:
Floating (LIBOR) settlement rates were 10% at January 1, 8% at March 31, and 6% at June 30, 2018. 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:
Required:
Prepare the journal entries through June 30, 2018, to record the issuance of the note, interest, and necessary adjustments for changes in fair value. Use the extended method demonstrated in Illustration A-3.
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Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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