On August 1, King Company paid $12,000 for one year of advertising in advance. Required: 1. How much will be expensed by the end of the year? 2. How much will be in the Prepaid Advertising account at the end of the year, after the adjusting entries have been prepared and posted? Note: Assume a year end of December 31, and assume that the advertising will be used evenly throughout the year. W 1. Amount expensed : 2. Amount in the Prepaid Advertising account