Use the following accounts in your answers:

Balance Sheet Accounts Profit & Loss Accounts

Cash Legal Fees

Prepaid Expenses Subscriptions

Accounts Payable

Accrued Expenses

Question No 1

In Dec 2018, Crosscut closes its books for the year and accrues $50,000 in legal fees its law firm estimates theyll be billing the following year for work done in 2018. On Jan 1, 2019 Crosscut receives a bill from the law firm for $30,000 pertaining to 2018 legal services and pays the bill on Jan 20th. On Feb 1Crosscut receives a final $15,000 bill from the law firm for legal work done in 2018 and pays the bill on Feb 20^th.

On the attached worksheet, show the December through February entries to record the transactions relating in Crosscuts 2018 legal expenses.