Compute a prepaid software balance and the monthly entry

About this exercise

You're the staff accountant booking an annual software renewal. Write a prompt for exactly three plain-text lines starting "Monthly expense:", "Dec 31 prepaid balance:" and "December entry:". Each shows its math. Your policy is that the one-time setup fee is expensed in September and only the subscription is amortized over the 12-month term. Under 80 words.

Common mistakes when you ask AI for this

• Amortizing the invoice total. The AI spreads $14,800 over 12 months, repeating the AP error. Try: Say: "Amortize only the $14,400 subscription; the setup fee is expensed."
• Ignoring earlier postings. The AI never notices October and November were posted at the wrong amount. Try: Add: "Note if the Oct and Nov postings were wrong and by how much."
• Wrong accounts. The AI debits prepaid or credits expense, reversing the entry. Try: Ask for "debit and credit accounts by name and number".
• Paragraph answer. The AI explains in prose with bold headers instead of three lines. Try: Say: "Exactly three plain-text lines, nothing after."
• Trusting the AI to count words. AI is bad at counting and runs past word limits. Try: Ask for fewer words than the real cap and keep each line short.

What a strong prompt includes

• Gives the line labels
• Excludes the setup fee
• Asks to show math
• Asks to check earlier postings
• Sets length and format

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