6. A company prepares its financial statements to 31 December each year. It pays rental costs on an office building annually in advance. It paid rental costs of GHC600,000 on 31 May Year 1 and GHC660,000 on 31 May Year 2. What is the expense for office rental for the year to 31 December Year 2? A. GHC625,000 B. GHC630,000 C. GHC635,000 D. GHC660,000 7. A company prepares its financial statements to 31 December each year. It hires an item of equipment for the period 1 November Year 1 to 30 April Year 2, at a cost of GHC42,000. However, it does not have to pay the hire charge until the end of the hire period, at the end of April Year 2. What expense for equipment hire, if any, should be included in the income statement for the year to 31 December Year 1? A. GHC4,000 B. GHC7,000 C. GHC14,000 D. GHC28,000. 8. The double entry for a credit sales transaction for GHC500 is: A. DR. Cash GHC500, CR. Sales GHC500 B. DR. Sales GHC500, CR. Cash GHC500 C. DR. Receivables GHC500, CR. Sales GHC500 D. DR. Sales GHC500, CR. Receivables GHC500