Answered

Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Explore a wealth of knowledge from professionals across different disciplines on our comprehensive platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

On June 30, 2014, Apricot Co. paid $5,000 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, 2014,for Apricot would include:

Sagot :

Answer:

A debit to Management Services Expense for $1,250

Explanation:

The adjusting entry should be

Management Services Expense Dr ($5,000 ÷ 2 × 6 ÷12) $1,250

         To Cash $1,250

(being cash paid is recorded)

Here cash is debited as it increased the expense and cash is credited as it decreased the assets

Hence, the same should be considered

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.