n December 31, 2021, Sad Inc. had a P3,000,000 balance in advertising expense account before any year-end adjustments. Radio and television advertising spots broadcast during December 2021 were billed to Happy on January 5, 2022. The invoice cost of P400,000 was paid on January 20, 2022. Included in the P3,000,000 is P600,000 for newspaper advertising for January 2022 sales promotional campaign.   How much is prepaid newspaper advertising as of December 31, 2021? a. 400,000 b. 600,000 c. 200,000 d. 300,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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n December 31, 2021, Sad Inc. had a P3,000,000 balance in advertising expense account before any year-end adjustments.

  • Radio and television advertising spots broadcast during December 2021 were billed to Happy on January 5, 2022. The invoice cost of P400,000 was paid on January 20, 2022.
  • Included in the P3,000,000 is P600,000 for newspaper advertising for January 2022 sales promotional campaign.

 

How much is prepaid newspaper advertising as of December 31, 2021?

a. 400,000
b. 600,000
c. 200,000
d. 300,000

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