At 30 June 20X2 a company had $1m 8% loan notes in issue, interest being paid half-yearly on 30 June and 31 December. On 30 September 20X2 the company redeemed $250,000 of these loan notes at par, paying interest due to that date. On 1 April 20X3 the company issued $500,000 7% loan notes, interest payable half-yearly on 31 March and 30 September. What figure should appear in the company's statement of profit or loss for interest payable in the year ended 30 June 20X3?
At 30 June 20X2 a company had $1m 8% loan notes in issue, interest being paid half-yearly on 30 June and 31 December. On 30 September 20X2 the company redeemed $250,000 of these loan notes at par, paying interest due to that date. On 1 April 20X3 the company issued $500,000 7% loan notes, interest payable half-yearly on 31 March and 30 September. What figure should appear in the company's statement of profit or loss for interest payable in the year ended 30 June 20X3?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At 30 June 20X2 a company had $1m 8% loan notes in issue, interest being paid half-yearly on 30
June and 31 December.
On 30 September 20X2 the company redeemed $250,000 of these loan notes at par, paying interest
due to that date.
On 1 April 20X3 the company issued $500,000 7% loan notes, interest payable half-yearly on 31
March and 30 September.
What figure should appear in the company's statement of profit or loss for interest payable in the year
ended 30 June 20X3?
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