Solution-Policy of recording all prepaid expenses

Policy of recording all prepaid expenses

Reference no: EM131412460

On July 1 Plum Co. paid $9,000 cash for management services to be performed over a two-year period. Plum follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On July 1 Plum should record:

a debit to an expense and credit to Cash for $9,000.
a debit to a prepaid expense and a credit to Cash for $9,000.
a debit to Cash for $9,000 and a credit to an expense for $9,000.
a debit to an expense and a credit to a prepaid expense for $9,000.
a credit to a prepaid expense and a debit to Cash for $9,000.

Reference no: EM131412460

Questions Cloud

Is statement a premise or a conclusion- operas except mozart : In the following enthymemes, determine whether the missing statement is a premise or a conclusion.- All of the operas except Mozart's were well performed, and Carmen was not written by Mozart.

What was the amount of credit sales during may : On April 30, Victor Services had an Accounts Receivable balance of $26,800. During the month of May, total credits to Accounts Receivable were $61,600 from customer payments. The May 31 Accounts Receivable balance was $21,000. What was the amount ..

Discuss chivalry in medieval times : Discuss chivalry in medieval times. Then define it today, giving specific examples from the news about people doing kindly deeds.

What is the number of flip-flops : Estimate the number of flip-flops that will be needed to implement that circuit for a 50MHz clock and sequential FSM encoding.

Policy of recording all prepaid expenses : On July 1 Plum Co. paid $9,000 cash for management services to be performed over a two-year period. Plum follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On July 1 Plum should record:

When receiving some kind of after-sale customer support : Explain a personal experience that you had when receiving some kind of after-sale customer support. Discuss what was done well and areas that could have been improved. Then describe the “perfect” process as it applies to your scenario. Finally, if yo..

Correct answer and double click the box : Identify the items from the following list that are likely to serve as source documents. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with t..

Observe scanner and point-of-sale system : Observe a scanner and Point-of-Sale (POS) system checkout counter at a store such as K-Mart, Target or Wal-Mart and answer the questions that follow. ) What other systems does this system interact with?

What is the crossover point in units? for the? processes : California? Gardens, Inc.,? prewashes, shreds, and distributes a variety of salad mixes in? 2-pound bags. Doug? Voss, Operations? VP, is considering a new? Hi-Speed shredder to replace the old?machine, referred to in the shop as? "Clunker." What is ..

User Account

All Pages

Policy of recording all prepaid expenses

Reference no: EM131412460

Reference no: EM131412460

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT