On November 1,2018,a company using accrual accounting,pays $900,000 for a television advertising campaign.Commercials will run evenly over six months beginning on November 1,2018.How much Advertising Expense will be reported on an income statement prepared for the year ended December 31,2018?

Question

Quizplus · Accepted Answer

($900,000 ÷ 6)× 4 = $600,000 (Note: 2 months of advertising expense will occur in 2018 for November and December;4 months will occur in 2019 for January through April)

On November 1,2018,a Company Using Accrual Accounting,pays $900,000 for a Television