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#10 State whether each situation is a prepaid expense (PE), unearned revenue (UR), accrued revenue (AR) or an accrued expense (AE). a) Unrecorded interest on
#10 State whether each situation is a prepaid expense (PE), unearned revenue (UR), accrued revenue (AR) or an accrued expense (AE).
a) Unrecorded interest on savings account is $530.
b) Property taxes that have been incurred but that have not yet been paid or recorded are $300.
c) Legal fees of $1,000 were collected in advance. By year end, 60% are still unearned.
d) Prepaid insurance had a $500 balance prior to adjustment. By year end, 40% is still unexpired.
e) Unpaid salaries earned by year end but not yet paid or recorded are $475.
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