Smith Co paid $12 thousand on June 1, 2017 for a 2-year subscription and booked everything as

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Smith Co paid $12 thousand on June 1, 2017 for a 2-year subscription and booked everything as subscription expense. The December 31, 2017 adjusting entry is

Select one:

A. debit subscription expense and credit prepaid subscription, $3,500.

B. debit subscription expense and credit prepaid subscription, $8,500.

C. debit prepaid subscription and credit subscription expense, $3,500.

D. debit prepaid subscription and credit subscription expense, $8,500.

Related Book For answer-question

Accounting Tools for Business Decision Making

ISBN: 978-1118096895

6th edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Posted Date: Sep 06, 2022 01:14 AM

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Smith Co paid $12 thousand on June 1, 2017 for a 2-year subscription and booked everything as

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Expert Answer:

The answer is B Debit subscription expense and credit prepaid subsc... View the full answer

Accounting Tools for Business Decision Making

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