The following section is taken from UGGS Ltd's statement of financial position at 31 December 2019....
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The following section is taken from UGGS Ltd's statement of financial position at 31 December 2019. 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) $560,000 Non-current liabilities Unsecured notes payable, 10% due 1 January $8,000,000 2023 Required: Prepare journal entries to record interest payments, and redemption of unsecured notes. a. Journalise the payment of interest on 1 January 2020 for current liabilities. b. Prepare the entry to pay the interest due on 1 July 2020 for the non-current liabilities. C Assume on 1 July 2022, after paying interest, that UGGS Ltd redeems half of the unsecured notes at 103%. d. Record the redemption of the notes. The following section is taken from UGGS Ltd's statement of financial position at 31 December 2019. 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) $560,000 Non-current liabilities Unsecured notes payable, 10% due 1 January $8,000,000 2023 Required: Prepare journal entries to record interest payments, and redemption of unsecured notes. a. Journalise the payment of interest on 1 January 2020 for current liabilities. b. Prepare the entry to pay the interest due on 1 July 2020 for the non-current liabilities. C Assume on 1 July 2022, after paying interest, that UGGS Ltd redeems half of the unsecured notes at 103%. d. Record the redemption of the notes.
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Date Accounts Title Dr Cr a Jan 1 2020 Interest payable 560000 Cash 560000 being int... View the full answer
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Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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