4. A business prepares its financial statements for the year to 31 October. It pays rent quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was increased from 48,000 to 60,000 from 1 March 2021. Compute the amount to recognise for rent in the financial statements for the year ended 31 October 2021? a) in the statement of profit or loss? b) in the statement of financial position? 2 marks 2 marks c) If at the start of the year there was an opening rent prepayment of 8,000, show how the transaction for the year would be reflected in the accounting equation. 3 marks Use the template on Moodle to show which elements of the accounting equation are affected by entering the amount and a +/- sign to denote the increase/decrease Assets + Expenses = Opening capital + Income + Liabilities Total 7 marks