Fratton issues $$360,000$ of redeemable $2\%$ debentures at a discount of $14\%$ on $1$st January $2015.$ Issue costs were $$5,265.$ The debenture will be redeemed on $31$st December $2017$ at par. Interest is paid annually in arrears and the effective interest rate is $8\%.$

Required:

Show the effect of the transaction on the statement of financial position and statement of profit or loss for the three year term of the debenture.