ABC has an accounting year end of 31 December and pays $300 per quarter for electricity.At 1 January 20x6 the statement from the electricity supplier showed that ABC had prepaid by $25. ABC then received electricity bills for the next four quarters starting on 1 January 20x6 and ending on 31 December 20X6 for $350, $375, $275 and $300 respectively.Which of the following are the correct entries for electricity in ABC’s statement of profit or loss and statement of financial position for the year ended 31 December 20X6?
A.
Statement of profit or loss statement of financial position $1300 $75 accrual
B.
Statement of profit or loss statement of financial position $1300 $$75 prepayment
C.
Statement of profit or loss statement of financial position $1200 $125 accrual
D.
Statement of profit or loss statement of financial position $1200 $125 prepayment