On July $1$ of the current calendar year, Olive Company paid $$9,100$ cash for management services to be performed over a two$-$year period beginning

July $1.$ The adjusting entry on December $31$ of the current year for Olive would include:

Multiple Choice

A debit to an expense and a credit to a prepaid expense for $$2,275.$

A debit to an expense and a credit to a prepaid expense for $$6,825.$

A debit to a prepaid expense and a credit to an expense for $$2,275.$

A debit to a prepaid expense and a credit to Cash for $$6,825.$

A credit to a liability and a debit to a prepaid expense for $$2,275.$