Reference no: EM13387499

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