In January,a Company Pays for Advertising Space in the Local

Multiple Choice

In January,a company pays for advertising space in the local paper for ads to be run during the months of January,February,and March at $1,500 a month.The journal entry to record the payment would debit to:

A) Cash for $4,500, credit Advertising Expense for $1,500, and credit Prepaid Advertising for $3,000.
B) Accounts Payable and a credit to Cash for $4,500.
C) Accounts Payable and a credit to Stockholders' Equity for $4,500.
D) Advertising Expense for $1,500, debit Prepaid Advertising for $3,000, and credit Cash for $4,500.