Journalise the payment of interest on January

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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 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 - Make journal entries to record interest payments, and redemption of unsecured notes.

a. Journalise the payment of interest on 1 January 2019.

1. The entry to pay the interest due on 1 July 2019.

2. Assume on 1 July 2021, after paying interest, that UGGS Ltd redeems half of the unsecured notes at 105.

3. Record the redemption of the notes.

Reference no: EM132694893

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