H plc owns 80% of the the voting shares of S plc. S plc is a subsidiary of H plc. The most recent income statements of each company include the following entries: H S £ £ Interest receivable 111,000 76,000 Finance charges 220,000 342,000 Two years' previously H plc made a loan of 437,000 to S plc which is repayable in full in 3 years' time. The loan bears interest at 8% a year. What figure will be reported in the Consolidated Income Statement of H plc for 'Interest receivable'?

H plc owns 80% of the the voting shares of S plc. S plc is a subsidiary of H plc. The most recent income statements of each company include the following entries: H S £ £ Interest receivable 111,000 76,000 Finance charges 220,000 342,000 Two years' previously H plc made a loan of 437,000 to S plc which is repayable in full in 3 years' time. The loan bears interest at 8% a year. What figure will be reported in the Consolidated Income Statement of H plc for 'Interest receivable'?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...

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H plc owns 70% of the the voting shares of S plc. S plc is a subsidiary of H plc. The most recent income statements of each company include the following entries: H plc S plc £ £ Interest receivable 317,000 206,000 Finance charges 145,000 230,000 Two years' previously H plc made a loan of 765,000 to S plc which is repayable in full in 4 years' time. The loan bears interest at 6% a year. What figure will be reported in the Consolidated Income Statement of H plc for 'Finance charges'?
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