Limited Company!!!

[WINGWEI]

At 30 June20x2 a company had $1m 8% loan notes in issue. Interest being paid half-yearly on 30 June and 31 December.
On 1 October 20x2 the company redeemed $250,000 of these loan notes at par, paying interest due to that date.
On 1 April 20x3 the company issued $500,000 7% loan notes, interest payable half-yearly on 31 March and 30 September.

What figure should appear in the company's income statement for interest payable in the year ended 30 June 20x3?
A. $88,750
B. $82,500
C. $65,000
D. $73,750

The Answer is D. May i know the calculation?



Regards.

[Deepak82]

I agree with the above calculations..The total works out to be 5,000 + 60,000 + 8,750 = $73,750. Hence the correct option is D.

[WINGWEI]

Thanks Nabeel and Andrew for details explaination^^

Have a nice day.