On December 31, 2020, Ivanhoe Corp. had a $ 11,600,000, 7.0% fixed-rate note outstanding, payable in 2 years. It decides to enter into a 2-year swap with Chicago First Bank to convert the fixed-rate debt to variable-rate debt. The terms of the swap indicate that Ivanhoe will receive interest at a fixed rate of 7.0% and will pay a variable rate equal to the 6-month LIBOR rate, based on the $ 11,600,000 amount. The LIBOR rate on December 31, 2020, is 6.0%. The LIBOR rate will be reset every 6 months and will be used to determine the variable rate to be paid for the following 6-month period. Ivanhoe Corp. designates the swap as a fair value hedge. Assume that the hedging relationship meets all the conditions necessary for hedge accounting. The 6-month LIBOR rate and the swap and debt fair values are as follows. Date 6-Month LIBOR Rate Swap Fair Debt Fair
Value Value
December 31, 2020 6.0 % $ 11,600,000
June 30, 2021 6.5 % ( 194,400 ) 11,405,600
December 31, 2021 5.0 % 54,910 11,654,910
Prepare the journal entries for:
(a) 6/30/2018
(b) 12/31/2018

At december 31, 2018, newman engineering’s liabilities include the following: $29 million of 5% bonds were issued for $29 million on may 31, 1999. the bonds mature on may 31, 2029, but bondholders have the option of calling (demanding payment on) the bonds on may 31, 2019. however, the option to call is not expected to be exercised, given prevailing market conditions. $33 million of 4% notes are due on may 31, 2022. a debt covenant requires newman to maintain current assets at least equal to 194% of its current liabilities. on december 31, 2018, newman is in violation of this covenant. newman obtained a waiver from national city bank until june 2019, having convinced the bank that the company’s normal 2 to 1 ratio of current assets to current liabilities will be reestablished during the first half of 2019. $26 million of 7% bonds were issued for $26 million on august 1, 1989. the bonds mature on july 31, 2019. sufficient cash is expected to be available to retire the bonds at maturity. required: classify the above mentioned debts as current liabilities or noncurrent liabilities. also, provide corresponding value for the same. (enter your answer in millions (i.e., 10,000,000 should be entered as