Policy of recording all prepaid expenses


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?

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Accounting Basics: Policy of recording all prepaid expenses
Reference No:- TGS0706152

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