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    mocgirl5's Avatar
    mocgirl5 Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Apr 9, 2007, 07:11 PM
    Another Questionable Entry
    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's Avatar
    goldenbutterfly Posts: 63, Reputation: 8
    Junior Member
    		  
    #2

    Apr 9, 2007, 08:25 PM
    Quote 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?
    If June 30 is the year-end, then your answer is correct.
    mocgirl5's Avatar
    mocgirl5 Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Apr 9, 2007, 08:26 PM
    It's only for the second quarter
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #4

    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?
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