On 1^st October, 2020 TiFA Ltd received the proceeds of $500,000 through the issue of a 7%, 5-year unsecured note. Interest is payable half-yearly on the 1^st January and 1^st July.

TiFA Ltd's financial year ends on 30^th June.

Required

Prepare journal entries to record the following events. (6 marks)

A. The issue of the unsecured note.

B. The payment of interest on 1^st January, 2021

C. Interest accrued on 30^th June, 2021.