Business, 13.02.2020 00:12 brodycruce
On July 1 of the current calendar year, Plum Co. paid $7,500 cash for management services to be performed over a two-year period beginning July 1. Plum follows a policy of recordin cash payment. The adjusting entry on December 31 of the current year for Plum would include:
A) A credit to a liability and a debit to a prepaid expense for $1,875.
B) A debit to a prepaid expense and a credit to Cash for $5,625.
C) A credit to a prepaid expense for $5,625.
D) A debit to a prepaid expense and a credit to an expense for $1,875.
E) A debit to an expense and a credit to a prepaid expense for $1,875.
Answers: 3
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On July 1 of the current calendar year, Plum Co. paid $7,500 cash for management services to be perf...
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