EXERCISE 4-8 Classification of Adjusting Entries INSTRUCTION: Classify the following transaction as: a. Accrued revenue c. Prepaid expenses b. Accrued expense d. Unearned revenue 1. Interest paid in advance at the time the note was discounted at the bank. 2. Property taxes paid in advance. 3. Commission income received in advance. 4. Rent received in advance in property owned. 5. Life insurance premiums received by an Insurance company. 6. Supplies on hand. 7. Unpaid salaries to employees. 8. Portion of fee earned by CPA but not due until completion of an audit. 9. Interest earned but not yet received. 10. Taxes owed but payable in the following month. 11. Subscription collected in advance by a publisher. 12. Receipts from sale of meal tickets by a restaurant. 13. Interest owed but not yet due. 14. A three-year premium paid on fire insurance policy. 15. Salary owed but not yet due. 16. Uncollected service income. 17. Accrued interest on notes payable. 18. Paid advertising expenses for the quarter. 19. Collected two months deposit and one month advance on rental of apartment. 20. Unrecorded interest on notes receivable.