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

Yes you are correct.