The following two part questions on financial reporting. MCQ's

(1) Business B has a year-end of 31 October. The business has an insurance policy that covers fire and water damage to the business factory buildings. To ensure a lower monthly rate for the insurance premiums, the business pays the insurance policy annually in advance on 1 May each year. On 1 May 2019 and 1 May 2020, the business paid 48000 and 49200 respectively to the insurance company. For the year ended and as at 31 October 2020, insurance will be reported in the SOCI and SOFP as follows: A. SOCI: Insurance expense (48000) SOFP: Current assets: Prepaid insurance 24000 B. SOCI: Insurance expense (48600) SOFP: Current assets: Prepaid insurance 24000 C. SOCI: Insurance expense (48000) SOFP: Current assets: Prepaid insurance 24600 D. SOCI: Insurance expense (48600) SOFP: Current assets: Prepaid insurance 20500 E. None of the above a) On 1 March 2019. a business purchases a machine to use in the business. An amount of 136800 is payable to the supplier on 1 March 2020. This is over a year later and longer than normal credit terms. The market related interest rate is 14%. Which journal entry will be processed by the business to record the transaction on 1 March 2019? A. DR Inventory 120000 CR Trade payables 120000 B. DR PPE: machinery 120000 CR Machine payable 120000 C. DR PPE: machinery 136800 CR Trade payables 136800 D. DR PPE: machinery 120000 CR Bank 120000 E. DR PPE: machinery 120000 DR Interest expense 16800 CR Trade payables 136800