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(Solved): On July 1 of the current calendar year, Plum Company paid $8,200 cash for management services to be ...



On July 1 of the current calendar year, Plum Company paid $8,200 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 ChoiceA debit to an expense and a credit to a prepaid expense for $6,150. A debit to a prepaid expense and a credit to Cash for $6,150. A debit to an expense and a credit to a prepaid expense for $2,050. A debit to a prepaid expense and a credit to an expense for $2,050. A credit to a liability and a debit to a prepaid expense for $2,050.



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