During 20x7, Advance Limited paid a total of $180,000 for rent, covering the period from 1 October 20x6 to 31 March 20x8. Which of the following should appear in the companys financial statements for the year ended 31 December 20x7?

Income statement

Balance sheet

Group of answer choices

$150,000 expense / Accrual $45,000

$150,000 expense/ Accrual $30,000

$120,000 expense/ Prepayment $30,000

$120,000 expense/ Prepayment $45,000

$120,000 expense / Accrual $30,000