incurred advertising expense on account?? QUICK!?

4 Answers

• The journal entry would be:

  Dr Advertising Expense xxxxx

  Cr Accounts Payable xxxxx

  Assets- no effect

  Liability- Increase

  Stockholders' E- decrease

• Advertising Expense

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  RE:

  incurred advertising expense on account?? QUICK!?

  Assets- no effect or decrease

  Liability- Increase or decrease

  Stockholders' E- decrease or no effect

  THANKS

• The advertisᴇмᴇɴt appeared in the same month as the prepayment. It's 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.