1) Distributions to owners ___

losses on income statement.

gains on income statement

do not affect income, but reduce the retained earnings

are not allowed under GAAP

In June, their first month of operations, WYZ Co. paid $36,000 for advertising. $6,000 of the payment was for advertising that will appear in magazines in the following month (July). The rest of the payment was for advertising that appeared in magazines and newspapers during the month of June. What amount would appear on tWYS Cos June 30 Balance Sheet as prepaid advertising?

30,000

6,000

36,000

42,000