On January 1, 2017, Greentree Foods borrowed \($5\) million of fixed rate debt at an annual rate of 3.5 percent, interest paid semiannually on June 30 and December 31 of each year, principal due on December 31, 2018. To hedge against falling interest rates, Greentree entered a receive fixed/pay variable interest rate swap at the Treasury bill rate plus 80 bp on a notional amount of \($5\) million, with the rate reset every six months. 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 increased in value by \($5,000\) and the fair value of the fixed rate debt increased by the same amount. On December 31, 2017, the Treasury bill rate is 2.5 percent; the swap and fixed rate debt increased in value by another \($1,000.\)

Required 

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