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w I have reviewed the unadjusted trial balance for the current period and the expenses are lower than anticipated. I recall signing off on a
w I have reviewed the unadjusted trial balance for the current period and the expenses are lower than anticipated. I recall signing off on a $12,000 payment to Pop Soda Events for the upcoming convention scheduled to take place in 6 months. I asked Carrie Undertakes to follow up on the payment and she stated the amount was coded to a prepaid expense account. What is the proper treatment for this type of expense and is there an adjustment that needs to be made to the general ledger? The $12,000 payment is an expense and should be coded to an expense account. An adjusting entry needs to be made to reclassify the amount from the prepaid expense account to the expense account. The $12,000 is a prepayment for the convention that is not scheduled to take place for another 6 months. A portion of the expense should be incurred each month until the event. An adjusting entry needs to be made to reclassify $2,000 from the prepaid expense account to the expense account. th The $12,000 is a prepayment or the convention that is not scheduled to take place for another 6 months. The expense has been accounted for correctly and an adjustment is unnecessary The $12,000 can be treated as an expense or a prepaid. We should treat this transaction in the manner that provides the company with the best tax advantage. Respond 1:31 PM 2/27/2021 99. (hp
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