The Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid for months of advertising. How muc

Question

3 years ago

9

h advertising expense should Law Firm record for the two months ending February 28 under the
a. cash basis
b. accrual basis?

1 answer:

kupik [55] · Answer 1 · 2022-04-26T17:41:35+03:00

Answer and Explanation:

The computation of the advertising expense that should be record for the two month under following basis is

a. For cash basis

It should be recorded at $2,000

b. For accrual basis

= $2,000 ×2 ÷5

= $800

In this way, it should be determined

And, the same should be relevant

The Law Firm prepays for advertising in the local newspaper. On January​ 1, the law firm paid for months of advertising. How muc