Problem 17B 15 (Part Level Submission) On December 31, 2017, Concord Corp. had a
ID: 2573575 • Letter: P
Question
Problem 17B 15 (Part Level Submission) On December 31, 2017, Concord Corp. had a $12.200,000 7.0% fixed-rate note otstandng payable in 2 years. It de ides ta erter eo a 2 yea me-d a ago rest tank to canvert the med at deotte vanable-rate debt. The terms ofthe swap in cate that Concord receive itere st . feed rate of 7.0%-d d pay avon able ate equal tothe 6 eenhi eo' a e bied o the S12,200,000 an the una rate on December 31, 2017,is6.0%. The uB0R rate wil be reset every 6 months and wa be used to deterie te vruble rgete be ad for bbwing 6-ma-pened SH-anddete iar-ke, in Concord Corp. designates the snap as a fair value hedge. Aume that the hedging relationship meets al teendt ons mosary for hedge aerning The 6 month teon.e and as follows Debt Fair Value $12,200,000 11,982,300 12,255,770 6-Month LIBOR Rate Swap Fair Value December 31, 2017 lune 30, 2018 December 31, 2018 6.5 % 5.0% (217,700 55,770 (a) 2 Your answer is correct Prese hr journal erenes to record the Sutomng transactions. (1) The entry, f any, to record the swap on December 31, 2017 (2) The entry to record the sermanud debt item, payment on hee 30, 20t (3) The entry to record the settlement of the (4) The entry to record the change in the fair value of the delt on June 30, 2018 (S) The entry to record the change in the foir valhoe of the swap at Xune 30, 2018 semiannual swap amount recewaties at 7.0%.rss amourt payatte at usoe, 0.0 manually. H ao entry is required select "No Entry" for the account ttles and enter for the amnts
Explanation / Answer
balance sheet liabilities notes payable $ 12,200,000.00 Income statement no effect