Week Two Quiz i On July 1 of the current calendar year, Olive Company paid $9,200 cash for management services to be performed over a two-year period beginning July LO 1. The adjusting entry on December 31 of the current year for Olive would include:
a) A debit to a prepaid expense and a credit to an expense for $2,300.
b) A debit to an expense and a credit to a prepaid expense for $2,300.
c) A debit to a prepaid expense and a credit to Cash for $6,900.
d) A credit to a liability and a debit to a prepaid expense for $2,300.