7. Briefly distinguish between a deferral and an accrual. In the space below, state whether each situation is a deferral or an accrual. Unrecorded interest on savings bond is $543. Property taxes that have been incurred but have not been paid or recorded amount to $600. Legal fees of $2,000 were collected in advance. By year end, 80 percent were still unearned. Prepaid Insurance had a $350 balance prior to adjustment. By year end, 30% was still unexpired. Unpaid salaries earned by year end but not yet paid or recorded amount to $835. 13. During the performance of the steps in the accounting cycle, trial balances are prepared in three different steps. Using specific names where applicable, discuss the time of preparation and the purpose served by each of the trial balances. 14. Prepare closing entries for December without explanations from the above trial balance, Remember that there are closing entries for the Revenue, Expense, Capital and Withdrawals accounts. Ingnore the adjustments in questions 1 to 6