8 At 30 June 20X2 a Runner Co had $1 million 8% loan notes in issue, interest being paid half-yearly on 30 June and 31 December. On 30 September 20X2 Runner Co redeemed $250,000 of these loan notes at par, paying interest due to that date. On 1 April 20X3 Runner Co issued $500,000 7% loan notes, interest payable half-yearly on 31 March and 30 September. What figure should appear in Runner Co's statement of profit or loss for interest payable in the year ended 30 June 20X3?

8 At 30 June 20X2 a Runner Co had $1 million 8% loan notes in issue, interest being paid half-yearly on 30 June and 31 December. On 30 September 20X2 Runner Co redeemed $250,000 of these loan notes at par, paying interest due to that date. On 1 April 20X3 Runner Co issued $500,000 7% loan notes, interest payable half-yearly on 31 March and 30 September. What figure should appear in Runner Co's statement of profit or loss for interest payable in the year ended 30 June 20X3?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 7MCQ

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