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?

Quote:

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Originally Posted by mocgirl5

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?

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

It's only for the second quarter

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?