Kizspy | Question: 37
(Choose 1 answer)
(1431)On June 30, 2009, Apricot Co. paid $7,500 cash for a service that will be performed during two-year period. On June 30, 2009 Apricot should record:
A. A credit to an expense for $7,500 and debit cash $ 7,500
B. A debit to a prepaid expense for $7,500 and credit cash $ 7,500
C. A debit to a prepaid expense for $7,500 and credit account payable $ 7,500
D. A credit to a prepaid expense for $7,500 and debit cash $ 7,500
E. A debit to expense for $7,500 and credit cash $ 7,500
