You have just joined Oxley Enterprise as the company accountant. You replaced the former accountant who resigned abruptly. In preparing the financial statements for the year ended 31 December 2021, you found the following:
On 15 Nov 2021, the company paid $120,000 for a series of advertisements to appear at the beginning of every month from Dec 2021 to Nov 2022. The previous accountant recorded this transaction as:
DR Advertising Expense $120,000
Cr Cash $120,000