Classify the Following Items As: 1) Prepaid Expense, 2) Unearned

question 31

Essay

Classify the following items as: 1) prepaid expense, 2) unearned revenue, 3) accrued expense, or 4) accrued revenue.
a) fees received but not yet earned
b) fees earned but not yet received
c) paid premium on a one-year insurance policy
d) property tax owed to be paid beginning of next year

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Definitions:

Subsidiary Ledger

A group of accounts that provide detail for accounts in the general ledger that summarize large numbers of transactions.

General Ledger Account

An individual account within the general ledger that records transactions related to a specific asset, liability, equity, revenue, or expense.

Accounts Payable

Short-term financial obligations or debts a company owes to its suppliers or creditors for goods and services received.

General Journal

A primary accounting record used to record all types of transactions before they are posted to individual accounts in the general ledger.