4. Signed a contract for legal services starting December 1, 2014, for $4,900 per month. Paid for the first three months on December 1, 2014.
Company uses an expense account instead of a prepaid so first entry is:
Legal expense
Cash
TO RECORD THE INITIAL TRANSACTION
MY QUESTION: how would I do the adjusting (reversing) entry for this transaction?
I don't know what is the asset account for legal expense
