Advertising Expense Assignment

On August 1, Lee Company received $40,500 for six months of rent in advance. On August 1, Lee Company credited Rent Revenue, which is an alternative way of recording the initial receipt of cash. Required: Journalize the adjusting entry on December 31. Date Account Title Debit Credit Dec. 31 (Choose one) Accounts Receivable Advertising Expense Advertising Revenue Insurance Expense Insurance Revenue Interest Expense Interest Payable Interest Receivable Interest Revenue Prepaid Advertising Prepaid Insurance Prepaid Rent Rent Expense Rent Revenue Salaries Expense Salaries Payable Service Revenue Supplies Expense Supplies Taxes Expense Taxes Payable Deferred Advertising Deferred Insurance Deferred Rent Revenue Utilities Expense Utilities Payable Explanation.