In her first financial year, a trader paid $1800 for insurance and $3200 for rent. By the end of the financial year, she had transferred insurance of $1500 and rent of $3600 to the income statement. What do the balances left on the accounts at the end of the financial year show?
- Ainsurance account: accrued expense; rent account: accrued expense
- Binsurance account: accrued expense; rent account: prepaid expense
- Cinsurance account: prepaid expense; rent account: accrued expense
- Dinsurance account: prepaid expense; rent account: prepaid expense