Q. Ron Carroll 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 Amounts paid on June 30 for a 1-year insurance policy
b Professional fees earned but not billed as of June 30
c Repairs to the firm's copy machine, incurred and paid in June
d An advance payment from a client for a performance next month at a convention
e The payment in part (d) from the client's point of view
f Interest owed on the company's bank loan, to be paid in early July
g The bank loan payable in part (f)
h Office supplies on hand at year-end