On January 1, 2021, LLB Industries borrowed $260.000 from Trust Bank by issuing a two-year, 12% note, with interest payable quarterly. LLB entered into a two-year interest rate swap agreement on January 1, 2021, and designated the swap as a fair value hedge. Its intent was to hedge the risk that general interest rates will decline, causing the fair value of its debt to increase. The agreement called for the company to receive payment based on a 12% fixed interest rate on a notional amount of $260.000 and to pay interest based on a floating interest rate. The contract called for cash settlement of the net interest amount quarterly. Floating (LIBOR) settlement rates were 12% at January 1, 10% at March 31, and 8% at June 30, 2021. 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: Fair value of interest rate swap Fair value of note payable January 1 0 $ 260,800 March 31 $ 7,400 $ 267,499 June 30 $ 13,194 $ 273,194 Required: Prepare the journal entries through June 30, 2021, to record the issuance of the note, interest, and necessary adjustments for changes in fair value. (If no entry is required for a transaction/event, select "No journal entry requlred" In the first account field. Round your Intermedlate and final answers to the nearest whole dollar.) Answer is not complete. No Date General Journal Credit Debit 260,000 January 01 Cash Notes payable 280,000 oo March 31 7,800 Interest expense Cash 7.800 March 31 7.800 X Cash Interest rate swap 6,500 X 6.500 X Interest expense March 31 7,400 o Interest expense Notes payable 7.400 oo boo boo 0 0 0 0 0 0 0 0 0 June 30 5,200 X Interest expense Notes payable Cash Cash Interest rate swap Interest revenue Interest expense June 30 5,200 X Interest expense Notes payable 5.200 x