107-003. Under the balance sheet classification of property, plant, and equipment, some accounts need adjustment and others do not. Which do and why? Which do not and why? 109-004. Identify the classification of following items as: a. accrued asset b. unearned revenue accrued liability d. prepaid expense (1) Three months' interest on notes payable paid in advance (3) Subscription fees for six months received in advance Services rendered but not yet billed at month-end Interest payable accrued on an accounts payable, but not yet paid Salaries payable owed but not yet paid Two year's premium on building paid in advance (6)