A sports club formed on 1 January was 2019. During the year ended 31 December 2019 the club purchased equipment costing GHC 5000, paying by cheque. In which of the club's financial statements did this appear?
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- Club ABC in Chingola gave you the following information.During the year to 31st December2015 K7 800 of subscriptions were received ofwhich K390 related to 2016. At 31st December 2015 there were still four membersowing subscriptions of K60 each. At 31st December 2014 the club hadsubscriptions amounting to K600 still due from members and K150 in respect ofsubscriptions had appeared as a current liability in the previous year’s statementof Financial Position.Required:Prepare a subscription account to find the amount of subscriptions chargeable toIncome and Expenditure Account for the year ended 31st December 2015.Bravo Company purchased a two-year insurance policy on August 1, 2021 for P28,800. Using an asset method, the reversing entry shall entail? a. A debit to prepaid insurance of P6,000 b. A debit to insurance expense of P6,00 c. A debit to insurance expense of P22,800 d. A credit to insurance expense of P22,800. e. the answer is not givenOn April 1,2019, ABC Company prepaid a P 38,000 premium on an annual insurance policy. The premium payment was a tax deductible expense in ABC's cash basis tax return. The accrual basis income statement will report a P 28,500 insurance expense in 2019 and 9,500 insurance expense for 2020. Income tax rate is 30% in 2019 and in subsequent years. In ABC's December 31,2019 statement of financial position, what amount related to insurance should be reported as deferred tax liability?
- . Midwest Enterprises made the following entry on December 31, 2020. Interest Expense 10,000 Interest Payable 10,000 (To record interest expense due on loan from Anaheim National Bank) What entry would Anaheim National Bank make regarding its outstanding loan to Midwest Enterprises? Explain why this must be the case.Covidibidapdap received PhP80 000 in cash on December 2020 from Romeo Limited in return for having provided financial advice during the 2020 financial year. Required: Explain, with reference to the relevant definitions, if a liability can be recognized based on the case. B. Briefly identify whether and/ or how your answer would change if the cash received had been received for financial advice to be provided in the 2021 financial year.On January 1, 2019, Q Co. contracted for the construction of a building for 20,000,000 on land that it had previously purchased. The building was completed on December 31, 2019. The following payments were made to the contractor: Payment date AmountJanuary 1. 2,000,000March 1. 6,000,000August 30. 10,000,000December 1. 2,000,000 The following represents the borrowings of Q Co. as of December 31, 2019:• 10%, 7,000,000, 4-year note dated January 1, 2019 with simple interest payable annually, specifically borrowed to finance the construction project. Interest income earned on the temporary investment of the proceeds is 120,000.• 10%, 10,000,000, 10-year note dated January 1, 2019 with interest payable annually.•12.5%, 15,000,000, 10-year note dated December 31, 2018 with interest payable annually. The building is estimated to have useful life of 20 years and a residual value of 1,482,500. The Building is…