Question No$.(2)$:

Newland corporation borrowed from CIB Bank an amount of $$10,000$ on $1$ April $2019.$

The total loan to be re$-$paid on $1$ April $2024.$

Newland company pays interest of $20\%$ per year to CIB Bank according to the contract.

At the beginning of $2020,$ Newland owed CIB a balance of $$300$ interest from the previous year $2019.$

During $2020,$ Newland paid CIB $80\%$ from the $$300$ interest owed back from $2019.$

Required:

Calculate the amount of Interest expense that will appear in the Income statement for $2019.$

Calculate the amount of Interest expense that will appear in the Income statement for $2020.$

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