Adjusting entries

deltacoop · #1 Mar 9, 2008, 07:37 PM

One month's advertising was expended in accordance with the agreement made with the newspaper on December 1. ( agreement is : Contracted with the local newspaper for three month's of adverting and paid in full the total fee of $600)

I am thinking that it is Accounts expense debit $200.00
and prepaid Newspaper adverisement is credited $200.00
Can you tell me if this is correct.
Thanks

MaggieMouse · Mar 12, 2008, 05:46 PM

Yes you are correct.



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