first drop down expense or revenue

second drop down a revenue or an expense

third drop down a liability or pre paid asset

last drop down januarys or decembers

On December 15, Great Designs Company hired an independent contractor for a project. The contractor completed the project on December 29 and submitted an invoice for $2,425 which was due on January 15. The amount was duly paid on January 15. a. Journalize the entry or entries necessary to record these transactions. If an amount box does not require an entry, leave it blank. Dec, 29 Professional Services Expense 2,425 Accounts Payable 2,425 Jan. 15 Accounts Payable 2,425 Cash 2425 b. Discuss how the accrual basis of accounting affects this (these) Journal entry(ies), The first journal entry is required to record the December's Income Statement and of the independent contractor. This journal entry created on December's Balance Sheet. The second journal entry did not affect income statement. in