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Jandayan A5

The document shows accounting entries over 4 years for interest expense, cash, loans payable, interest rate swaps. It records the cash flows and valuation changes for the interest rate swap over time.

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Ellah Mae
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31 views1 page

Jandayan A5

The document shows accounting entries over 4 years for interest expense, cash, loans payable, interest rate swaps. It records the cash flows and valuation changes for the interest rate swap over time.

Uploaded by

Ellah Mae
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Problem 2

a. January 1, 2016
Cash 1,000,000
Loans payable 1,000,000

b. December 31, 2016


Interest expense 90,000
Cash 90,000

Unrealized loss-IRS 17,833


Interest rate swap payable-IRS 17,833

c. December 31, 2017

Interest expense 80,000


Cash 80,000

Interest rate swap payable 10,000


Cash 10,000

Interest expense 10,000


Unrealized loss-IRS 10,000

Interest rate swap payable 7,833


Unrealized loss -IRS 7,833

Interest rate swap receivable 26,787


Unrealized gain- IRS 26,787

d. December 31, 2018

Loans payable 1,000,000


Interest expense 120,000
Cash 1,120,000

Cash 30,000
Interest rate swap receivable 26,787
Unrealized gain- IRS 3,213

Unrealized gain- IRS 30,000


Interest expense 30,000

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