State Whether Each Situation Is a Prepaid Expense (PE), Unearned

question 47

Short Answer

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.

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Definitions:

Ruffini Corpuscles

Specialized sensory receptors located in the skin and joints that detect stretch, deformation within joints, and warmth.

Prefrontal Cortex

The front part of the frontal lobes of the brain, involved in complex behaviors such as planning, decision making, and moderating social behavior.

Identification

The process of recognizing or establishing the identity of a person or thing, often used in legal, psychological, and scientific contexts.