Use the following information to answer questions 7 and 8 two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment On June 30, 2019, Apricot Co. paid $7,500 cash for management services to be performed overa 7. On June 30, 2017 Apricot should record: A) A credit to an expense for $7,500. B) A debit to an expense for $7,500. C) A debit to a prepaid expense for $7,500. D) A credit to a prepaid expense for $7,500. 8. The adjusting entry on December 31, 2017 for Apricot would include: A) A debit to an expense for $5,625 B) A debit to a prepaid expense for $5,625. C) A debit to an expense for $1,875. D) A debit to prepaid expense for $1,875 The J.Godfrey, Capital account has a credit balance of $17,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000, what is the ending balance in the J. Godfrey, Capital account after all closing entries are made? 9. A) $8,000. B) S15.400. C) $23,400 D) $17,000. E) $32,400 10. The closing process is necessary in order to: A) calculate net income or net loss for an accounting period B) ensure that all permanent accounts are closed to zero at the end of each accounting period. C) ensure that the company complies with state laws. D) ensure that net income or net loss and owner withdrawals for the period are closed into the owner's capital account. E) ensure that management is aware of how well the company is operating. 11. Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is: A) Debit Office Supplies $105 and credit Office Supplies Expense $105. B) Debit Office Supplies Expense $105 and credit Office Supplies $105. C) Debit Office Supplies Expense $254 and credit Office Supplies $254 D) Debit Office Supplies $254 and credit Office Supplies Expense $254. E) Debit Office Supplies $105 and credit Supplies Expense $254