Ask Experts Questions for FREE Help !
Ask
    mocgirl5's Avatar
    mocgirl5 Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Apr 9, 2007, 06:33 PM
    How to Adjust This entry
    I have a computer simulation project for principles of accounting and I am stuck on this entry. The question posted is: A total of $985 worth of media advertising, paid for and correctly charged to the Advertising expense account, will be received/used in the first two weeks of July(third quarter). I am adjusting on June 30, for the end of the second quarter.
    I did the entry as such: Dr. Prepaid Advertising 985.00
    Cr. Advertising Expense 985.00
    Is this right?
    goldenbutterfly's Avatar
    goldenbutterfly Posts: 63, Reputation: 8
    Junior Member
    		  
    #2

    Apr 9, 2007, 06:48 PM
    Quote Originally Posted by mocgirl5
    I have a computer simulation project for principles of accounting and i am stuck on this entry. The question posted is: A total of $985 worth of media advertising, paid for and correctly charged to the Advertising expense account, will be received/used in the first two weeks of July(third quarter). I am adjusting on June 30, for the end of the second quarter.
    I did the entry as such: Dr. Prepaid Advertising 985.00
    Cr. Advertising Expense 985.00
    Is this right?
    It's correct.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #3

    Apr 9, 2007, 09:45 PM
    Mocgirl, you answer is not correct.

    You are prepaying for advertising services.

    Therefore, the JE is:
    Dr. Prepaid Advertising 985 (which you did)
    Cr. CASH 985

    Once the services are rendered (so in the first 2 weeks of July), you will:
    Dr. ADVERTISING EXPENSE 985
    Cr. Prepaid Advertising 985
    goldenbutterfly's Avatar
    goldenbutterfly Posts: 63, Reputation: 8
    Junior Member
    		  
    #4

    Apr 9, 2007, 10:54 PM
    Hi CaptainForest,

    Just want to comment that the advertising expense has been paid for and correctly recorded in the advertising expense. So there is no need to cr cash again.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Trying to adjust hot water in shower [ 3 Answers ]

I am trying to remove the set screw from the faucet but I don't see one. All I have is a little hole on the back without a screw in it. Is there another way to get it off or to adjust the hot water without removing the valve.

Help mini to adjust [ 1 Answers ]

Mini is a 4yr old chihuahua,I have had here since she was 5 weeks.Mike is 9 weeks and got him 2 days ago.Mini avoids Mike and he just runs to her wanting to play and she wants no part of him.What can I do to help Mini adjust?

Adjust Well Pressure [ 4 Answers ]

I am trying to adjust the pressure on my well. It is at 60 when the water is off and it "starts" when then pressure hits 48, I need to get it down to 40. There are 2 screws I have adjusted both screws, both counter clockwise and clockwise. Neither one seems to lower that pressure. They raise or...

Adjust Withholdings Advice [ 1 Answers ]

I recently read one of the topic on this site regarding adjusting your withholding to pay the least amount of Tax to IRS. My question is that how would I know that my withholding are correct with my employer/ Any advise Thanks Nitin

View more questions Search