On January 1, 2017, Greentree Foods borrowed \($5\) million of variable rate debt at an annual rate equal to the Treasury bill rate plus 80 bp, interest paid semiannually on June 30 and December 31 of each year, principal due on December 31, 2018. The variable rate is reset every six months. To hedge against increasing interest rates, Greentree entered a receive variable/pay fixed interest rate swap, agreeing to pay a 3.5 percent fixed rate on a notional amount of \($5\) million.

The Treasury bill rate was 3 percent on January 1, 2017. On June 30, 2017, the Treasury bill rate is 2.6 percent; the swap declined in value by \($5,000.\) On December 31, 2017, the Treasury bill rate is 2.5 percent; the swap declined in value by another \($1,000.\)

Required 

Prepare the journal entries related to the debt and the swap for the year 2017.