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Kappa Ltd has a year end of April 30th. The insurance is paid annually on January 1 of each year. On April 30 2010 there was a prepaid expense of £3,200 in relation to insurance in Kappa's statement of financial position. On January 1 2011, Kappa paid £5,700 for its insurance.
Problem 1: What is the insurance expense that will feature in Kappa's income statement for the year ended 30 April 2011?
A. £5,100
B. £1,900
C. £2,500
D. £5,700
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