QUESTION 4 On 1 June year 1, Thabo paid an insurance invoice of P2 400 for the year to 31 May year 2. What is the charge to the income statement and the entry in the financial statement for the year ended 31 December year 1? A. P1 000 income statement and prepayment of P1 400 B. P1 400 income statement and accrual of P1 000 C. P1 400 income statement and prepayment of P1 000 D. P2 400 income statement and no entry in the statement of financial position