Chapter 1 Problem 14-7
2008
Jan. 1 Cash 5,000,000
Loan payable 5,000,000
Dec. 31 Interest expense (10% x 5,000,000) 500,000
Cash 500,000
31 Interest swap receivable 464,000
Unrealized gain – interest swap
(5,000,000 x 4% x 2.32) 464,000
2009
Dec. 31 Interest expense (14% x 5,000,000) 700,000
Cash 700,000
31 Cash 200,000
Interest rate swap receivable 200,000
31 Unrealized gain – interest rate swap 200,000
Interest expense 200,000
31 Unrealized gain – interest swap 95,000
Interest rate swap receivable 95,000
Unrealized gain – 12/31/2009 (5,000,000 x 2% x 1.69) 169,000
Unrealized gain per book (464,000 – 200,000) 264,000
Decrease in unrealized gain ( 95,000)
2010
Dec. 31 Interest expense (12% x 5,000,000) 600,000
Cash 600,000
31 Cash 100,000
Interest rate swap receivable 100,000
31 Unrealized gain – interest rate swap 100,000
Interest expense 100,000
31 Unrealized gain – interest swap 24,000
Interest rate swap receivable 24,000
Unrealized gain – 12/31/2010 (5,000,000 x 1% x .90) 45,000
Unrealized gain per book (169,000 – 100,000) 69,000
Decrease in unrealized gain (24,000)
2011
Dec. 31 Interest expense (11% x 5,000,000) 550,000
Cash 550,000
31 Cash 50,000
Interest rate swap receivable 45,000
Unrealized gain – interest rate swap 5,000
Dec. 31 Unrealized gain – interest rate swap 50,000
Interest expense 50,000
31 Loan payable 5,000,000
Cash 5,000,000
No comments:
Post a Comment