incurred advertising expense on account QUICK! [Solved]

THANKS

The journal entry would be:
Dr Advertising Expense xxxxx
Cr Accounts Payable xxxxx

Assets- no effect
Liability- Increase
Stockholders E- decrease

The advertist appeared in the same month as the prepayment. Its on the same balance sheet, so it would not be considered a pre-payment. When an item cannot be shown on the same page, it would be considered a prepayment for the service, ie payment for the ad in Feb for an ad running in Mar.

The advertist appeared in the same month as the prepayment. Its on the same balance sheet, so it would not be considered a pre-payment. When an item cannot be shown on the same page, it would be considered a prepayment for the service, ie payment for the ad in Feb for an ad running in Mar.

RE:
incurred advertising expense on account QUICK!
Assets- no effect or decrease
Liability- Increase or decrease
Stockholders E- decrease or no effect

RE:
incurred advertising expense on account QUICK!
Assets- no effect or decrease
Liability- Increase or decrease
Stockholders E- decrease or no effect

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This post is last updated on hrtanswers.com at Date : 1st of September – 2022