Question: Help me with this, please. Also provide solution for the derivation of amounts. Thank you! Problem 12-4 (LAA) On January 1, 2020, Tenable Company borrowed

Help me with this, please. Also provide solution for the derivation of amounts. Thank you!

Help me with this, please. Also provide solution for the derivation of

Problem 12-4 (LAA) On January 1, 2020, Tenable Company borrowed P5,000,000 from a bank at a variable rate of interest for 4 years. Interest will be paid annually to the bank on December 31 and the principal is due on December 31, 2023. Under the agreement, the market rate of interest every January 1 resets the variable rate for that period and the amount of interest to be paid on December 31. In conjunction with the loan, the entity entered into a "receive variable, pay fixed" interest rate swap agreement with another bank speculator. The interest rate swap agreement was designated as a cash flow hedge. Market rates of interest January 1, 2020 10% January 1, 2021 14% January 1, 2022 12% January 1, 2023 11% Present value of an ordinary annuity of 1 At 14% for three periods 2.32 At 12% for two periods 1.69 At 11% for one period 0.90 Required: Prepare journal entries for 2020, 2021, 2022 and 2023 to recognize all transactions relating to the contract of loan and the derivative contract

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