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Version:0.9 StartHTML:0000000105 EndHTML:0000001891 StartFragment:0000000141 EndFragment:0000001851 On 1 December 2019, Buckland plc had 2m 6% loan notes in issue, interest being payable half-yearly on 28 February
Version:0.9 StartHTML:0000000105 EndHTML:0000001891 StartFragment:0000000141 EndFragment:0000001851On 1 December 2019, Buckland plc had 2m 6% loan notes in issue, interest being payable half-yearly on 28 February and 31 August. On 30 June 2020 the company redeemed 1.5m of these loan notes at par, paying the interest due to that date. On 1 August 2020 the company issued a further 1m 3.75% loan notes at par, interest payable half-yearly on 31 January and 31 July. Based on the above, what figure should appear in this company's Statement of Profit or Loss (or Income Statement) for interest expense in the year ended 30 November 2020?
On 1 December 2019, Buckland plc had 2m 6% loan notes in issue, interest
being payable half-yearly on 28 February and 31 August.
On 30 June 2020 the company redeemed 1.5m of these loan notes at par,
paying the interest due to that date.
On 1 August 2020 the company issued a further 1m 3.75% loan notes at par,
interest payable half-yearly on 31 January and 31 July.
Based on the above, what figure should appear in this company's Statement of
Profit or Loss (or Income Statement) for interest expense in the year ended
30 November 2020?
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Financial Accounting in an Economic Context
Authors: Jamie Pratt
8th Edition
9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292
