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In January, a company pays for advertising space in the local paper for ads to be run during the months of January, February, and March
In January, a company pays for advertising space in the local paper for ads to be run during the months of January, February, and March at $1,500 a month. The payment would be recorded in January as a: |
debit of $4,500 to Cash, a credit of $1,500 to Advertising Expense, and a credit of $3,000 to Prepaid Advertising. |
debit of $1,500 to Advertising Expense, a debit of $3,000 to Prepaid Advertising, and a credit of $4,500 to Cash. |
debit of $4,500 to Accounts Payable and a credit of $4,500 to Cash. |
debit of $4,500 to Accounts Payable and a credit of $4,500 to Stockholders' Equity. |
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