Prepare the entries to record the recognition of interest at the end of each year.

List all debit entries before credit entries.$)$

Account Titles and Explanation

$($To record interest income in the first year$)$

Interest Income

$($To record interest income in the second year$)$

Interest Income

On January $1,$ Windsors Inc. sold used equipment with a cost of $$15,000$ and a carrying amount of $$2,100$ to Novak Corp. in exchange

for a $$5,000,$ three$-$year non$-$interest$-$bearing note receivable. Although no interest was specified, the market rate for a loan of that

risk would be $9\%.$ Assume that Windsors follows IFRS.