Reference no: EM13758459
Recognition of concepts.
Jim Armstrong 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. Interest owed on the company's bank loan, to be paid in early July
b. Professional fees earned but not billed as of June 30
c. Office supplies on hand at year-end
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. Amounts paid on June 30 for a 1-year insurance policy
g. The bank loan payable in part (a)
h. Repairs to the firm's copy machine, incurred and paid in June
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Recognition of concepts
: Jim Armstrong 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:
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