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In January, Flamingo Company pays for advertising space in the local paper for ads to be run during the months of January, February, and March
In January, Flamingo 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 should be recorded in January as a: a. debit of $1,500 to advertising expense, a debit of $3,000 to prepaid advertising, and a credit of $4,500 to cash. b. debit of $4,500 to accounts payable and a credit of $4,500 to cash. c. debit of $4,500 to accounts payable and a credit of $4,500 to shareholders' equity. d. debit of $4,500 to cash, a credit of $1,500 to advertising expense, and a credit of $3,000 to prepaid advertising
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