On January 1, 2025, ABC Corp. issued 10-year, $100,000 bonds at par. The bonds make payments annually on December 31 at a stated fixed rate of interest of 8.0%. On January 1, 2025, ABC Corp. also entered into an interest rate swap. In this arrangement, ABC Corp. paid variable interest rates to a swap bank based on the end of year variable rate and in return, the swap bank paid fixed interest to ABC Corp. Interest rates during the first year of the interest rate swap were the following: As a result of the change in interest rates, as of December 31, 2025 the bond liability had a fair value of $103,843 and the interest rate swap had a fair value of $3,843. ABC Corp. posts gains and losses associated with fair value changes on the swap and bonds to interest expense. Required: Provide the appropriate journal entries prepared by ABC Corp. on December 31, 2025. Provide the appropriate journal entries prepared by ABC Corp. on December 31, 2025. Journal entry worksheet Net settlement amount paid or received on the interest rate swap. Note: Enter debits before credits