A company has occupied rented premises for some years, paying an annual rent of $120,000. From 1 April 20 13 the rent was increased to $144,000 per year. Rent is paid quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. What figures should appear for rent in the company’s financial statements for the year ended 30 November 20 13 ?
A.
expense 136,000 Prepayment 12,000
B.
expense 136,000 Prepayment 24,000
D.
expense 138,000 accruals 12,000