Question details

ACC 205 Week 2 Assignment 2
$ 15.00

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. (Prepaid expense)

b.         Professional fees earned but not billed as of June 30. (Accrued revenue)

c.         Office supplies on hand at year-end. (Prepaid expense)

d.         An advance payment from a client for a performance next month at a convention.     (Unearned revenue)

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

f.          Amount paid on June 30 for a 1-year insurance policy. (Prepaid expense)

g.         The bank loan payable in part (a). (None of the foregoing)

h.         Repairs to the firm's copy machine, incurred and paid in June. (None of the foregoing)

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