Log in

View Full Version : Another Questionable Entry


mocgirl5
Apr 9, 2007, 07:11 PM
Again, from computer simulation program, this entry goes in the general journal. It is part of a weekly account of transactions. Transaction is worded:

June 30
Issued Check 30439 for $850.00 to advertising agency for advertising copy that will run over the next two weeks in the local media.

I entered the entry as: Dr. Prepaid Advertising 850.00
Cr. Cash 850.00
Is this correct?

goldenbutterfly
Apr 9, 2007, 08:25 PM
Again, from computer simulation program, this entry goes in the general
journal. It is part of a weekly account of transactions. Transaction is worded:

June 30
Issued Check 30439 for $850.00 to advertising agency for advertising copy that will run over the next two weeks in the local media.

I entered the entry as: Dr. Prepaid Advertising 850.00
Cr. Cash 850.00
Is this correct?

If June 30 is the year-end, then your answer is correct.

mocgirl5
Apr 9, 2007, 08:26 PM
It's only for the second quarter

CaptainForest
Apr 9, 2007, 09:33 PM
Your answer is correct mocgirl.

Next time you need to make financial statements, make sure to expense the advertising and draw down the prepaid.

I assume this is just a homework problem for school?