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Question - The balance in the Prepaid Advertising Account on October 1st for Modern Company was $5,040. On December 1st it renewed its advertising and promotion contract with the Direct Sale TV channel for 3 more months for a total price of $7,590. The payment in full will be made on January 5th. Modern Company's accounting period ends on December 31st.
Required -
1: The adjusting journal entry on Prepaid Advertising on October 31st was for: $?
2: What is the year end balance of Advertising Payable reported in the balance sheet of Dec 31st?
3: What is the Advertising Expense reported on the annual Income Statement ended on December 31st?
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