On June 30 of the Current Calendar Year, Apricot Co

question 156

Multiple Choice

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.

---

Definitions:

Democrats

A member or supporter of the Democratic Party, one of the two major political parties in the United States.

T-test

A statistical test used to determine if there is a significant difference between the means of two groups.