A) Identify which of the following are financial instruments and state with explanations whether they are financial assets, financial liability, or equity. I. Epro Ltd sold inventory for GH₵ 10, 000 to DeDons Enterprise on a 15 day trade credit II. Epro Ltd paid GHC 30,000 in advance for a year insurance policy III. Epro Ltd entered into a contract to sell GH₵ 200,000 in six months’ time for GH₵ 98,000 IIII. Epro Ltd issued 200 000 ordinary shares at GH₵ 2 per share and were acquired by Mr. Adepa V. Epro Ltd borrowed GH₵ 400,000 under a mortgage from Watico Bank

A) Identify which of the following are financial instruments and state with explanations whether they are financial assets, financial liability, or equity. I. Epro Ltd sold inventory for GH₵ 10, 000 to DeDons Enterprise on a 15 day trade credit II. Epro Ltd paid GHC 30,000 in advance for a year insurance policy III. Epro Ltd entered into a contract to sell GH₵ 200,000 in six months’ time for GH₵ 98,000 IIII. Epro Ltd issued 200 000 ordinary shares at GH₵ 2 per share and were acquired by Mr. Adepa V. Epro Ltd borrowed GH₵ 400,000 under a mortgage from Watico Bank

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1PA: Consider the following situations and determine (1) which type of liability should be recognized...

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