On January 1, Windsor, Inc. sold used equipment with a cost of $17,000 and a carrying...

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On January 1, Windsor, Inc. sold used equipment with a cost of $17,000 and a carrying amount of $2,300 to Swifty Corporation in exchange for a $5,100, three-year non-interest-bearing note receivable. Although no interest was specified, the market rate for a loan of that risk would be 7%. Assume that Windsor follows IFRS. Prepare the entries to record the recognition of interest each year. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To record interest income in the first year) (To record interest income in the second year) (To record interest income in the third year) On January 1, Windsor, Inc. sold used equipment with a cost of $17,000 and a carrying amount of $2,300 to Swifty Corporation in exchange for a $5,100, three-year non-interest-bearing note receivable. Although no interest was specified, the market rate for a loan of that risk would be 7%. Assume that Windsor follows IFRS. Prepare the entries to record the recognition of interest each year. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To record interest income in the first year) (To record interest income in the second year) (To record interest income in the third year)

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Journal entry Account titles and explanation Notes receivable ... View the full answer