On July $1$ of the current calendar year, Olive Company paid $$8,200$ 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 Ollve would include:

Multiple Choice

A debit to an expense and a credit to a prepaid expense for $$2,050.$

A debit to a prepaid expense and a credit to an expense for $$2,050.$

A debit to a prepaid expense and a credit to Cash for $$6,150.$

A credit to a liability and a debit to a prepaid expense for $$2,050.$

A debit to an expense and a credit to a prepaid expense for $$6,150.$