Cristofer

Business

18 September, 15:43

State whether each situation is a prepaid expense (PE), unearned revenue (UR), accrued revenue (AR) or an accrued expense (AE).

1. Unrecorded interest on savings bonds is $245.

2. Property taxes that have been incurred but that have not yet been paid or recorded amount to $300.

3. Legal fees of $1,000 were collected in advance. By year end 60 percent were still unearned.

4. Prepaid insurance had a $500 balance prior to adjustment. By year end, 40 percent was still unexpired.

5. Unpaid salaries earned by year end but not yet paid or recorded amounted to $1,200.