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On January 1, 2007, LKM got an $18,000, 0% note receivable from Suncor in exchange for...

On January 1, 2007, LKM got an $18,000, 0% note receivable from Suncor in exchange for a delivery furniture LKM no longer needed. Suncor is repaying the note in three equal instalments of $6,000, with the first payment due January 1, 2008. The market rate of interest when the note was received was 5% per annum. The sale of the furniture was correctly recorded.

Based on IFRS standard, write the year-end (Dec 31, 2007)adjusting entries for this transaction.

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