On July 1 of the current calendar year, Plum Company paid

$8,900

cash for management services to be performed over a two-year period beginning July\ The adjusting entry on December 31 of the current year for Plum would include:\ Multiple Choice\ A debit to an expense and a credit to a prepaid expense for

$6,675

.\ A debit to a prepaid expense and a credit to Cash for

$6,675

.\ A debit to an expense and a credit to a prepaid expense for

$2,225

.\ A debit to a prepaid expense and a credit to an expense for

$2,225

.\ A credit to a liability and a debit to a prepaid expense for

$2,225

.

On July 1 of the current calendar year, Plum Company paid $8,900 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 Plum would include: Multiple Choice A debit to an expense and a credit to a prepaid expense for $6,675. A debit to a prepaid expense and a credit to Cash for $6,675. A debit to an expense and a credit to a prepaid expense for $2,225. A debit to a prepaid expense and a credit to an expense for $2,225. A credit to a liability and a debit to a prepaid expense for $2,225