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post #1 of 10 Old 03-31-2008, 12:33 PM Thread Starter
cherokee99spt
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Quick Accounting Question

Would the account "Deposit for future advertising" be considered a current asset or an investment, on the classified balance sheet?

1999 Jeep Cherokee Sport 4x4 Black

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post #2 of 10 Old 03-31-2008, 04:16 PM Thread Starter
cherokee99spt
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I guess i'm not an idiot!

1999 Jeep Cherokee Sport 4x4 Black

Quote:
Originally Posted by KMcNaught
If the owner of a Hummer ever threatens to crush your Jeep there is a simple means of escape; just drive off the road.
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post #3 of 10 Old 03-31-2008, 05:03 PM
michiganmaveric
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I'll bite, asset.

Previous Jeeps: 84 CJ7 (A True Jeep), 2000 XJ (163,000 Miles/Totaled (Pictures of wrecked Jeep in gallery)), 2004 WJ (parting out die to major electrical issues)

If you don't have time to do it right the first time, how do you have time to do it over.

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post #4 of 10 Old 03-31-2008, 05:09 PM
1997zj
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so that would be an account payable for future advertisement correct? I would say its a current asset, even though you are prepaying.

1997 Jeep Grand Cherokee Laredo i6
235/75/15 bfg's all terrains
plenty of trail damage


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post #5 of 10 Old 03-31-2008, 05:14 PM Thread Starter
cherokee99spt
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I don't think it would be a payable because that would make it a liability, the money is being set aside, and it therefore has future value (if im thinking about this correctly). On the classified balance sheet, assets get divided into different categories and I can't figure out if it's an investment or a current asset, or something else.

1999 Jeep Cherokee Sport 4x4 Black

Quote:
Originally Posted by KMcNaught
If the owner of a Hummer ever threatens to crush your Jeep there is a simple means of escape; just drive off the road.
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post #6 of 10 Old 03-31-2008, 05:14 PM
michiganmaveric
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It would have to be a current asset, because there is no guarantee that it will be spent on advertising in the future. He could spend it on a $4000 a night hooker.

Previous Jeeps: 84 CJ7 (A True Jeep), 2000 XJ (163,000 Miles/Totaled (Pictures of wrecked Jeep in gallery)), 2004 WJ (parting out die to major electrical issues)

If you don't have time to do it right the first time, how do you have time to do it over.

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post #7 of 10 Old 03-31-2008, 05:19 PM
1997zj
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oo a deposit! of cash for future advertisement! current asset. do you need to do closing entries at all?

1997 Jeep Grand Cherokee Laredo i6
235/75/15 bfg's all terrains
plenty of trail damage


Future upgrades...
31x10.5 bfg all terrains
3 inch rustys suspension lift
steering stabilizer (any suggestions)
jks quick disco's
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post #8 of 10 Old 03-31-2008, 06:25 PM
bryris
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That is prepaid advertising and as such should be listed on the asset side of the BS. Then you can list it as long term or current depending on whether it will be expensed or capitalized within 1 yr or not.

1995 YJ Sahara
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post #9 of 10 Old 03-31-2008, 06:44 PM Thread Starter
cherokee99spt
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Yea it's definitely a current asset and no I do not need to do closing entries for this problem just the classified balance sheet.

1999 Jeep Cherokee Sport 4x4 Black

Quote:
Originally Posted by KMcNaught
If the owner of a Hummer ever threatens to crush your Jeep there is a simple means of escape; just drive off the road.
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post #10 of 10 Old 03-31-2008, 09:19 PM
JustChillin
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It's an current asset.
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