Prepare the journal entries

Company B is closing its books for 2022 and asks its law firm, Firm A, for the amount to accrue for legal work performed in 2022 that won’t be billed until 2023. The law firm estimates $100,000 of 2022 legal fees will be billed after year-end.

Company B accrued $100,000 in December 2022. In Jan ‘23, Firm A bills Company B $60,000 for ‘22 legal work and indicate the remaining $40,000 will be billed in Feb 2023.

In Feb, the law firm issued a final bill for 2022 legal work for $32,000 and Company B paid the law firm $92,000.

Below the first entry is given. Note the "journals column" must indicate if its a purchase, sales, general, cash receipts, or cash disbursement

Date	Account	Journal	Debit	Credit
12/31/22	Legal Expense	Purchase	100,000
12/31/22	Accounts Payable	Purchase		100,000
	(To accrue for '22 legal expense)