Compute amount of interest payable on the bonds

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Desmond Ltd., which reports under IFRS and has a December 31 year-end, issued 7-year bonds with a par value of $600,000 and a stated interest rate of 3%, on April 1, 20X1. The bonds pay interest semi-annually on September 30 and March 31 and were issued when the market interest rate was 5%. In the blank boxes below, please provide the amounts asked for in each of the following questions in this order (when entering amounts please do not use commas, negative signs, dollar signs or cents).

Problem 1: The amount of interest expense on these bonds that Desmond will report in its income statement for the year ended December 31, 20X1.

Problem 2: The amount of interest payable on these bonds that the company will report on its statement of financial position for the year ended December 31, 20X1.

Reference no: EM132662807

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