Week Two Exercise Assignment : Revenue and Expenses

Rhiannon Neufell

ACC 205 - Principles of Accounting I

Instructor Brent Beyer

May 31, 2015

Week Two Exercise Assignment

Revenue and Expense

1. Recognition of concepts.

Jim Armstrong operates a small company that books entertainers for theaters, parties, conventions, and so forth. The company's fiscal year ends on June 30. Consider the following items and classify each as either (1) prepaid expense, (2) unearned revenue, (3) accrued expense, (4) accrued revenue, or (5) none of the foregoing.

a.Interest owed on the company's bank loan, to be paid in early July. (Prepaid expense)

b.Professional fees earned but not billed as of June 30. (Accrued revenue)

c.Office supplies on hand at year-end. (Prepaid expense)

d.An advance...