The trial balance shows insurance costs as £8,200, but there is a prepayment of

£1,200. Therefore:

(a) an expense of £9,400 will be shown in the income statement

(b) an expense of £7,000 will be shown in the income statement

(c) prepayments of £9,400 will be shown under current assets in the statement of financial position

(d) prepayments of £1,200 will be shown under current liabilities in the statement of financial position