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. Prepare the journal entries to recognize the swap, assuming the company follows hedge accounting under IFRS. $($Credit account

titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No

Entry" for the account titles and enter $0$ for the amounts. Record journal entries in the order presented in the problem.

List all debit entries before credit entries.$)$:

$($To decrease the value of the contract$)$

$($To record the "fix" under hedge accounting$)$

$($To increase the value of the contract$)$

$($to record the "fix" under hedge accounting$)$