Question

Transaction 4
The owners paid $2,500 for website advertising. They were able to get a good deal because one of the company's owners also owns stock in the website company. The owners also paid $5,500 for some advertising in local newspapers. [Note: Combine both transactions into one entry].

Account:               Dollar amount:   

Account:   Dollar amount:   

Account: Dollar amount:   

Account: Dollar amount:   

Account: Dollar amount:   

Account options: Cash, Accounts Receivable, Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank

Answer 1

Answer:

Transaction 4
Accounts	Cash	Dollar Amount	$ -8,000.00
Accounts	Advertising Expenses	Dollar Amount	$    8,000.00

Working Notes – By Combining both entries Total Advertising expense will be $ 8000.

Cash Will be decreased and shown as a minus Figure.

Journal Entry Would be

Advertisement expense                               $8000.00

                Cash                                                      $8000.00