On June 30,2011,Apricot Co

Multiple Choice

On June 30,2011,Apricot Co.paid $5,000 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 30,2011 Apricot should record:

A) A credit to an expense for $5,000
B) A debit to an expense for $5,000
C) A credit to a prepaid expense for $5,000
D) A debit to a prepaid expense for $5,000
E) A debit to Cash for $5,000