Johnny Flowers Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $4,500 for six months of advertising.

Johnny Flowers Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $4,500 for six months of advertising. Cash Basis Accrual Basis Cash Payment January1 4,500 January 1 Expenses Recorded January 4,500 Total Expenses Recorded Johnny Flowers Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $4,500 for six months of advertising. Cash Basis Accrual Basis Cash Payment January1 4,500 January 1 Expenses Recorded January 4,500 Total Expenses Recorded