Question
Before end-of-year adjustment, Expenses (license fee) account shows $25,000. This is 5 months worth of license fee paid on November 1st, 2018. The fee is
Before end-of-year adjustment, Expenses (license fee) account shows $25,000.
This is 5 months worth of license fee paid on November 1st, 2018. The fee is paid monthly.
What is the adjusting entry at the end of the year?
Answer:
Increase (or decrease) Expenses by X and decrease (or increase) prepayments by Y.
Please complete this sentence. Thank you.
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Financial Investigation And Forensic Accounting
Authors: George A Manning
3rd Edition
0367864347, 9780367864347
