During the year to 30 September 2014. K co made the following payments:
1. $29,520 interest on $738,000 8% loan stock issued on 1 January 2014. Interest is payable on 30 June and 31 December.
2. $5,040 dividend on $84,000 $1 6% irredeemable preference shares.
3. $250 dividend on $5,000 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 | 738,000 |
| Interest for 9 months | 44,280 |
| Redeemable Preference shares | 5,000 |
| Interest for the year | 250 |
| Answer | 44,530 |