The following information relates to a debentures issue of White Noise Ltd dated 1 January 2024.

Required

(a) Prepare general journal entries to record the:
(i) issue of the debentures (ii) 30 June and 31 December 2024 interest payments (iii) 30 June 2025 interest payment.

(b) Calculate the interest expense for the year ended 30 June 2025, and prepare the entry to close the Interest Expense account to the Profit or Loss Summary account.

(c) Show how the debentures will be reported at 30 June 2025.

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Date issued Nominal value Stated interest rate 1 January 2024 $4.000 8% Interest payment dates 30 June and 31 December Term to maturity 6 years Cash received from the issue $2.000.000 The company's financial year-end is 30 June.