Justin Taylor does a marvelous job supplying background and Scriptural allusions in Wesley's great hymn "And Can It Be." Taylor writes:
According to the editor of "The Oxford Edition of the Works of John Wesley" (Oxford: Clarendon, 1975-1983, vol. 7), “And Can It Be” was written immediately after Charles Wesley’s conversion (May 21, 1738). Wesley knew his Bible well prior to this time, but had not yet experienced assurance of new birth or the fulness of grace in his life.
The editor also that it was probably this hymn, or “Where Should My Wond’ring Soul Begin?” that was sung late on the evening of his brother John’s Aldersgate Street conversion just three days later on May 24.
John Lawson, in "A Thousand Tongues: The Wesley Hymns as a Guide to Scriptural Teaching" (London: Paternoster, 1987), says this “is perhaps the best known and best loved of all the Methodist hymns associated with the conversion experience.”
Wesley begins the first stanza by expressing amazement over the love expressed in God the Son dying for him; it is a mystery that we who caused his death now benefit from it.
In the second stanza, Wesley calls for adoration at the incomprehensibility of God’s love and mercy in this sacrifice.
In the third stanza, Wesley recounts the infinite grace and mercy of Christ’s love and humility in the incarnation, death, and finding of lost sinners.
Now in the fourth stanza, Wesley turns his attention to the bondage of his own sin and the freedom he found in Christ.
Finally, he explores the results of Christ’s amazing and merciful work: there is no condemnation for those made alive in Christ and clothed in his righteousness; rather, there is bold access to the throne as we have the right to claim the eschatological crown.
Using and adapting the notations in the reference works cited above, I have sought to identify probable biblical allusions (in the KJV) that probably implicitly or explicitly informed Wesley’s wording and concepts in this great hymn: