On June 30 Apricot Co

Multiple Choice

On June 30 Apricot Co. paid $7,500 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On June 30 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.
E) A debit to Cash for $7,500.