On July 1 of the current calendar year Plum Company paid 7

Last updated: 3/18/2024

On July 1 of the current calendar year Plum Company paid 7 900 cash for management services to be performed over a two year period beginning July 1 The adjusting entry on December 31 of the current year for Plum would include Multiple Choice A debit to an expense and a credit to a prepaid expense for 5 925 A debit to a prepaid expense and a credit to Cash for 5 925 A debit to an expense and a credit to a prepaid expense for 1 975 A debit to a prepaid expense and a credit to an expense for 1 975 A credit to a liability and a debit to a prepaid expense for 1 975