On july 1 of the current calendar year. olive co paid 7700 cash for management services to be performed over a two year period beginning july 1. olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. the adjusting entry on december 31 of the current year for olive would include

                                             d                  c

Prepaid expenses                         7.700  

    Cash                                                             7.700

Managment services expense      1.925  

   Prepaid expenses                                        1.925

Explanation:

Paid1-jul              7700

Two Years       7.70024 months

Monthly                  321               month

Current Year       1.925           6 months

.

You must record the expense of the current year which is six months. (1.925)  

answer'; i believe the correct answer is (15,000) workers a year are treated for injuries caused by jacks, lifts or jack stands;