Problem 3: On January 2, 2025, Hyett Inc. enters a 5-year interest rate swap contract to effectively hedge against the fixed annual interest payments of a 3-year, 4%, $50,000 note. The swap calls for Hyett Inc. to receive payments annually on December 31 from the counterparty based upon a 4% interest rate for a notional amount of $50,000 and to make payments to the counterparty based upon LIBOR. LIBOR is 4.2% as of January 2, 2025, and the rate will be adjusted every 12 months to the current LIBOR rate. The swap has zero value on January 2, 2025, and on December 31, 2025. a. Prepare the journal entry on January 2, 2025, to record the issuance of the note and the initiation of the interest rate swap agreement. b. Prepare the entries related to the note payable and the interest rate swap on December 31, 2025, assuming Libor remains unchanged