8 At 30 June 20X2 a Runner Co had $1 million 8% loan notes in issue, interest being paid half-yearly on 30 June and 31 December. On 30 September 20X2 Runner Co redeemed $250,000 of these loan notes at par, paying interest due to that date. On 1 April 20X3 Runner Co issued $500,000 7% loan notes, interest payable half-yearly on 31 March and 30 September. What figure should appear in Runner Co's statement of profit or loss for interest payable in the year ended 30 June 20X3?

8 At 30 June 20X2 a Runner Co had $1 million 8% loan notes in issue, interest being paid half-yearly on 30 June and 31 December. On 30 September 20X2 Runner Co redeemed $250,000 of these loan notes at par, paying interest due to that date. On 1 April 20X3 Runner Co issued $500,000 7% loan notes, interest payable half-yearly on 31 March and 30 September. What figure should appear in Runner Co's statement of profit or loss for interest payable in the year ended 30 June 20X3?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On July 15, when the prime rate was set at 4.25%, Canadian Footwear took out an operating loan from CIBC for $9,000.00 at prime plus 1.75%. The terms of the loan require a fixed payment of $1,690.00 on the 15th of every month until the loan is repaid. The prime rate climbed by 0.25% on September 21. Complete the repayment schedule below by filling in the appropriate interest rates. Date Jul 15 Aug 15 Sep 15 Sep 21 Oct 15 Nov 15 Dec 15 Jan 15 Balance before Transaction $9,000.00 $7,355.86 $5,703.34 $5,703,34 $4,042.41 $2,373.87 $696.06 Annual Interest Rate * * * * * $45.86 $37.48 $5.63 24/365 $23.44 31/365 $21.46 % 30/365 $12,19 31/365 % % % % % Number Interest Accrued of Days Charged Interest % 31/365 31/365 6/365 Payment (+) or Principal Advance Amount (-) $45.86 $1,690.00 $1,644,14 $37.48 $1,690.00 $1.652.52 $5.63 $0.00 $0.00 $1,690.00 $1,660.93 $29.07 $21.46 $1,690.00 $1,668.54 $1,690.00 $1,677.81 $699.75 $696.06 $12.19 $3.69 $3,69 Balance after Transaction $9,000.00 $7,355.86…
Just as a heads up in the question it mentions ordinary interest, ordinary interest is 360 days instead of the full 365 days a year
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