During the year to 30 September 2014. K co made the following payments:
1. $30,135 interest on $861,000 7% loan stock issued on 1 January 2014. Interest is payable on 30 June and 31 December.
2. $2,880 dividend on $48,000 $1 6% irredeemable preference shares.
3. $100 dividend on $2,000 5% redeemable preference shares.
What should be the finance cost in the statement of profit or loss for the year ended 30 September 2014?
Suggested solutions:
| Loan Stock | 861,000 |
| Interest for 9 months | 45,203 |
| Redeemable Preference shares | 2,000 |
| Interest for the year | 100 |
| Answer | 45,303 |