Introduction to Adjusting Journal Entries and Prepaid Expenses Video Lessons

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Problem: At the beginning of January, Langhurst Company paid $6,000 for insurance for the next four months beginning January 1, $3,000 for advertising to be run from February 1 to March 15, and $8,000 for rent over the next two months beginning January 1. What is the correct journal entry for recording a summary of these transactions? A) General and Administrative Expenses $17,000, Cash $17,000 B) General and Administrative Expenses $17,000, Accounts Payable 17,000 C) Prepaid Expenses $17,000, Cash $17,000 D) Prepaid Expenses $14,000, Advertising Expense $3000, Cash $17,000

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At the beginning of January, Langhurst Company paid $6,000 for insurance for the next four months beginning January 1, $3,000 for advertising to be run from February 1 to March 15, and $8,000 for rent over the next two months beginning January 1. What is the correct journal entry for recording a summary of these transactions?

A) General and Administrative Expenses $17,000, Cash $17,000

B) General and Administrative Expenses $17,000, Accounts Payable 17,000

C) Prepaid Expenses $17,000, Cash $17,000

D) Prepaid Expenses $14,000, Advertising Expense $3000, Cash $17,000

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