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FFA - I would Like some help please

AAvinash4y ago
I’m really not sure how to find this, can you lead me to the right course video? If not just please work it out so I can use it as an example. At 30 June 20×6 a company had $1m 8% loan notes in issue. Interest is paid half-yearly on 30 June and 31 December. On 30 September 20×6 the company redeemed $250,000 of these loan notes at par, and paid the interest due to that date. On 1 April 20×7 the company issued $500,000 7% loan notes at par. Interest is payable half yearly on 31 March and 30 September. What figure should appear in the company’s statement of profit or loss for finance costs for the year ended 30 June 20×7? $88,750 $82,500 $73,750 $65,000 Also, for this question, the answer I have is $4,994,600, is that correct? The following balances have been extracted from Sara’s trial balance at 31 December 20X6: Debit Credit Retained earnings at 1 January 20×6 $4,695,600 10% Loan notes issued in 20×3 $1,300,000 Loan note interest paid $65,000 Profit for the year ended 31 Dec 20×6 is $520,000. Income tax for the year has been estimated at $156,000. What is the figure for retained earnings in Sara’s statement of financial position as at 31 Dec 20×6? $4,929,600 $4,994,600 $5,059,600 $5,215,600
John MoffatJohn MoffatTutor4y ago#1
The free lectures on limited companies explain how to deal with both of these questions. Your answer to the second question is not correct. You need to subtract the full interest on the loan notes of $130,000 (even though only half as been paid and the other half is still owing). However why on earth are you attempting questions for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – they have answers and workings.
AAvinash4y ago#2
These questions were given by a lecturer who taught me FA I just wanted to go over the exercise questions he had given to us, he didn't give us the answers, so now I'm looking back over them, and I'm in a bit of a pickle.... Thanks for the help though.
John MoffatJohn MoffatTutor4y ago#3
You are welcome.
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