Statement of cash flow

From 1 July 20X6 to 31 December 20X6 the loan notes were 8,000 and so the interest for this 6 months is 1/2 x 8% x 8,000. On 1 January 20X7 they issued 2,000 more loan notes and the total went up to 10,000. So the interest for the 6 months from 1 January 20X7 to 30 June 20X7 is 1/2 x 8% x 10,000. The total interest for the year is the two added together.