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6. Uptown Looks Ltd (Uptown) is an interior design company with offices in two parishes. You are conducting the audit for the year ended 30 Sept 2021 and the following came to your attention: On 1 Jan 2021, the client took out a loan to fund expansion into two additional parishes. The following information is available in relation to the loan: Finance charges in the Income Statement Opening loan balance on 1 Jan 2021 $810,000 $4,000,000 The loan has a fixed interest rate of 2% per month and interest is paid at the end of the month. Uptown repaid capital of $500,000 on 1 April 2021. Required: Perform analytical procedures to verify the finance charge. What is the expected finance charge on the loan for the year ended 30 Sept 2021 and the resulting impact on the profit for the period? (5 marks)

6. Uptown Looks Ltd (Uptown) is an interior design company with offices in two parishes. You are conducting the audit for the year ended 30 Sept 2021 and the following came to your attention: On 1 Jan 2021, the client took out a loan to fund expansion into two additional parishes. The following information is available in relation to the loan: Finance charges in the Income Statement Opening loan balance on 1 Jan 2021 $810,000$4,000,000 The loan has a fixed interest rate of 2% per month and interest is paid at the end of the month. Uptown repaid capital of $500,000 on 1 April 2021. Required: Perform analytical procedures to verify the finance charge. What is the expected finance charge on the loan for the year ended 30 Sept 2021 and the resulting impact on the profit for the period

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