Adjusting entries - advertising expense
Hi,
I have a problem with one journal entry. Here's the situation:
The company paid 150,000 for misc. operating expenses (in 2006). This is my entry:
Dr. Misc. Op. Exp. 150,000
Cr. Cash 150,000
And now I have to make an adjustment entry. A review of the company's advertising campaign indicated that of the misc. operating expenses made in 2006, $30,000 applies to promotions to be undertaken during 2007. My entry looks like this, but I'm not sure if it's correct:
Dr. Prepaid Advertising 30,000
Cr. Cash 30,000