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Answer the following assuming a balance date of 30 June 2016

Accounting

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Answer the following assuming a balance date of 30 June 2016. Journal narrations are not required.

Ellis Ltd paid $4,200 for 6 months advertising on 1 January 2016. The transaction was initially recorded as an asset.

Prepare any adjusting entry, if required, for the financial year ending 30 June 2016. Justify your answer.