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Refer to Question: Triple-A Accounting Services agreed to perform services for...
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Refer to Question:
Triple-A Accounting Services agreed to perform services for a client at a rate of $2,000 per month. A six-month prepayment was made in advance on October 1, 2016 andservices began on that date. December 31, 2016 is the end of Triple-A’s accounting year.What is the October 1, 2016 entry to record the prepayment?
What is the entry to make the necessary adjustment on December 31, 2016? (Triple-A adjusts their books only at the end of the year.)
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