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

question 265

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

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Definitions:

Neurofibrillary Tangles

Aggregates of hyperphosphorylated tau protein found in neurons, associated with Alzheimer's disease and other neurodegenerative conditions.

Twisted Protein Fibers

Abnormally shaped protein strands that can accumulate in cells, often associated with neurodegenerative diseases such as Alzheimer's.

Alzheimer's Disease

A progressive neurodegenerative disease characterized by memory loss, cognitive impairment, and functional decline.

Hippocampus

A major component of the brain, vital for memory formation and spatial navigation, located within the temporal lobe.