CH5

Q4

Your calendar year company pays $12,000 a year for security services. On November 1. you remit payment for the next 3 months' service and record it in Prepaid Security Expense. At year end, what adjusting entry will you record? (first line debit - second line credit) Select one: O a. Security Expense 3,000 Prepaid Security Expense 3.000 b. Security Expense 2,000 Prepaid Security Expense 2,000 O c. Prepaid Security Expense 1,000 Cash 1,000 d. Prepaid Security Expense 1,000 Security Expense 1,000 Check