Texas Company has a $5,000,000,9% bank loan from James Bank. On January 1, 2020, the bank loan has three years to maturity. Texas enters into a three-year interest rate swap with Black and White Investments with a \$5 million notional amount. The agreement calls for Texas to receive a fixed interest rate of 9% and pay a variable rate based on LIBOR at the beginning of the year. Payments to Black and White are to be made for the net amount at each year-end. At the beginning of 2020 , the LIBOR rate is 8.5%. The three-year fixed rate at the end of 2020 is 10%. Required: Prepare the journal entries that Texas would make in 2020 relating to the bank loan and the derivative