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capital structure and finance costs

Forums › ACCA Forums › ACCA FA Financial Accounting Forums › capital structure and finance costs

  • This topic has 0 replies, 1 voice, and was last updated 7 years ago by greenapp.
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    Posts
  • September 18, 2017 at 12:37 pm #407864
    greenapp
    Member
    • Topics: 21
    • Replies: 12
    • ☆

    rivision13.8/ 30 June 20×2 a company had $1m 8% loan notes in issue, interest being paid half-yearly on 30 June and 31 December.
    on 30 September 20×2 the company redeemed $250,000 of these loan notes at par, paying interes due to that date.
    On 1 April 20X3 the company issued $500,000 7% loan notes, interest payable half-yearly 31 March and 30 September.
    what figure should appear in the company’s statement of profit or loss for interest payable in the year ended 30 June 20X3?
    A $88,750
    B $82,500
    C $65,000
    D $73,750
    The answer is D.
    July-September (1,000,000× 8% x 3/12)=20,000
    October-March (750.000× 8% × 6/12)=30,000
    April-June
    ( 750,000 ×8% × 3/12 )=15,000
    (500,000 x 7% x 3/12)=8,750
    *Total interest payable in S.P/L=73.750
    #anyone explain the answer please ,
    # & why we added 500 with 250 ?

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