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| Martin draws up his year-end accounts to the 31 December each year. He has only been trading for a couple of years and is confused about how to treat prepayments in his accounts. Martin’s business premises are rented. He has to pay rent quarterly in advance on 1 February, 1 May, 1 August and 1 November each year. During the year ended 31 December 20X0, Martin paid the following amounts： 1 February $2,550; 1 May $2,550; 1 August $2,550； 1 November $2,550. During the year ended 31 December 20X1 there was a rent increase half-way through the year and he made the following payments： 1 February $2,550； 1 May $2,550; 1 August $2,750; 1 November $2,750. What will be shown in Martin’s accounts for the year ended 31 December 20X1 in respect of the rent on his business premises? Income Statement Statement of Financial Position A. $10,200 $850 B. $10,467 $850 C. $10,533 $917 D. $10,600 $917 |