Question
The following section is taken from Privy Ltd's statement of financial position at 31 December 2018. Interest is payable half-yearly on 1 January and 1
The following section is taken from Privy Ltd's statement of financial position at 31 December 2018.
Interest is payable half-yearly on 1 January and 1 July. Assume no interest is accrued on 30 June.
Current liabilities
Interest payable on unsecured notes (for 6 months from 1 July to 31 December)
$360,000
Non-current liabilities
Unsecured notes payable, 10% due 1 January 2022
$6,000,000
Required: journal entries to record interest payments, and redemption of unsecured notes.
a.Journalise the payment of interest on 1 January 2019.
- the entry to pay the interest due on 1 July 2019.
- Assume on 1 July 2021, after paying interest, that UGGS Ltd redeems half of the unsecured notes at 105.
- Record the redemption of the notes.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cost Accounting Principles And Applications
Authors: Horace Brock, Linda Herrington, La Vonda Ramey
7th Edition
0071115609, 978-0071115605
