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Business, 25.02.2020 22:15 rafiamajd4537

On June 30 of the current calendar year, Apricot Co. paid $7,500 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 for Apricot would include:

a. A debit to an expense for $5,625.
b. A debit to a prepaid expense for $5,625.
c. A debit to an expense for $1,875.
d. A debit to a prepaid expense for $1,875.
e. A credit to a liability for $1,875.

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On June 30 of the current calendar year, Apricot Co. paid $7,500 cash for management services to be...
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