On 1 June year 1, H paid an insurance invoice of N2,400 for the year to 31 May year 2. What is the charge to the income statement and the entry in the financial statement for the year ended 31 December year 1?
A. N1,000 income statement and prepayment of N1,400.
B. N1,400 income statement and accrual of N1,000.
C. N1,400 income statement and prepayment of N1,000.
D. N2,400 income statement and no entry in the statement of financial position.
