During the year to 30 September 2014. K co made the following payments:
1. $14,760 interest on $369,000 8% loan stock issued on 1 January 2014. Interest is payable on 30 June and 31 December.
2. $720 dividend on $12,000 $1 6% irredeemable preference shares.
3. $400 dividend on $8,000 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 | 369,000 |
| Interest for 9 months | 22,140 |
| Redeemable Preference shares | 8,000 |
| Interest for the year | 400 |
| Answer | 22,540 |