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

Essay

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 $180.
2. Property taxes that have been incurred but that have not yet been paid or recorded amount to $500.
3. Legal fees of $1200 were collected in advance. By year end 60 percent were still unearned.
4. Prepaid insurance had a $600 balance prior to adjustment. By year end 40 percent was still unexpired.