State whether each situation is a prepaid expense, unearned revenue, accrued revenue or an accrued expense. 1. Unrecorded interest on savings bonds is $241. Property taxes that have been incurred but that have not yet been paid or recorded amount to $336. 2. 3. 4. 5. Legal fees of $820 were collected in advance. By year end 60 percent were still unearned. Prepaid insurance had a $480 balance prior to adjustment. By year-end, 40 percent was still unexpired. Unpaid salaries earned by year-end but not yet paid or recorded amounted to $1,272. 2