Question

The owners paid $2,000 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 $6,000 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, prepared rent, fixtures and equipment, accounts payable, interest payable, wages payable, notes payable, cash in capital, returned earnings, leave blank

Answer 1

Answer
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 $ 8,000. Cash Will be decreased and shown as a minus Figure. Journal Entry Would be Advertisement expense                              $8,000.00                            Cash                                                      $8,000.00 ( To Record account payment of Advertisement expenses)