Evaluate prepaid expense and unearned revenue

Reference no: EM134934

Q. Ron Carroll operates a small company that books entertainers for theaters, parties, conventions, and so forth.

The company's fiscal year ends on June 30. Consider the following items and classify each as either: (1) prepaid expense, (2) unearned revenue, (3) accrued expense, (4) accrued revenue, or (5) none of the foregoing.

a Amounts paid on June 30 for a 1-year insurance policy

b Professional fees earned but not billed as of June 30

c Repairs to the firm's copy machine, incurred and paid in June

d An advance payment from a client for a performance next month at a convention

e The payment in part (d) from the client's point of view

f Interest owed on the company's bank loan, to be paid in early July

g The bank loan payable in part (f)

h Office supplies on hand at year-end

Reference no: EM134934

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