On January $2,2023,$ Sheridan Corp. issues a $$12-$million, five$-$year note at LIBOR, with interest paid annually. To protect against the

cash flow uncertainty related to interest payments that are based on LIBOR, Sheridan entered into an interest rate swap to pay $4\%$

fixed and receive LIBOR based on $$12$ million for the term of the note. The LIBOR rate for the first year is $3\mathrm{.}5\%.$ The LIBOR rate is

reset to $4\mathrm{.}9\%$ on January $2,2024.$ Sheridan follows ASPE and uses hedge accounting. On December $31,2023,$ the fair value of the

swap decreased by $$13,500$ : it increased by $$4,000$ on December $31,2024.$ Assume that the criteria for hedge accounting under ASPE

are met. prepare the journal entries $to$