At 30 June 20X3 a company has issued £100,000 7% debentures. On 1 April 20X4 the company issues a further £50,000 of the same debentures.

What is the interest expense for the year ended 30 June 20X4?

Assuming the company pays interest quarterly in arrears on the last day of each quarter (31 March, 30 June, 30 September, and 31 December) and the company pays all interest when it is due, what is the cash paid for interest in the year ended 30 June 20X4?

If there is an accrual for interest at 30 June 20X3 and 20X4 of £1,750 and £2,625, respectively, what is the cash paid for interest in the year ended 30 June 20X4? LO4