Hour Place Clock Repair Paid $2,400 Cash in Advance for a Six

Multiple Choice

Hour Place Clock Repair paid $2,400 cash in advance for a six month advertising contract with the local newspaper.According to the matching principle,if 2 months of the contract has expired by the end of the current fiscal year,how much should Hour Place Clock Repair report as Advertising Expense on the Income Statement?

A) $0
B) $400
C) $800
D) $2,400