On January 1, 2018, Hicks Corp. sold inventory costing $32,000 and received $6,000 cash and a $40,000 promissory note. The five-year note was repayable at $8,734 per annum including interest at 3%. The market rate of interest for similar transactions was 7%. The first payment was due on January 1, 2019. Hicks Corp. had a December 31 year-end and prepared its financial statements in accordance with IFRS. It did not prepare interim statements or make accruals during the year. 

Required:

Prepare journal entries to record:

a. The sale of inventory.

b. Interest revenue earned in 2018.

c. Receipt of the loan payment on January 1, 2019.

d. Interest revenue earned in 2019.