Find the amount of interest payable on these bonds

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Question - LDC Ltd., which reports under IFRS and has a December 31 year-end, issued 7-year bonds with a par value of $810,000 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%.

Required -

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

2. Find 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: EM132868696

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