MC Qu. 153 In January, a company pays for advertising... 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 $1.530 a month. The journal entry to record the payment would debit to O Accounts Payable and a credit to Stockholders Equity for $4.590 Cash for $4590, creait Advertising Expense for $1,530. and creat Prepad Advertising for $3.060 0 Accounts Payable and a credit to Cash for $4.500 O Advertising Expense for $1.530, debit Prepaid Aovertising for sao6o and sredit Cesn for $4590