On January 2, 2020,CraneCorp. issues a $10-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,Craneentered into an interest rate swap to pay6% fixed and receive LIBOR based on $10million for the term of the note. The LIBOR rate for the first year is5.8%. The LIBOR rate is reset to6.8% on January 2, 2021.Cranefollows ASPE and uses hedge accounting. On December 31, 2020, the fair value of the swap decreased by $13,500: it increased by $4,000on December 31, 2021. Assume that the criteria for hedge accounting under ASPE are met.

Prepare the journal entries relating to the interest for the years ended December 31, 2020 and 2021

Prepare the journal entries relating to the interest for the years ended December 31, 2020 and 2021. (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.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record payment of interest.) December 31, 2020 (To record payment on swap.) December 31, 2021 (To record payment of interest.) December 31, 2021