Matching
State whether each situation is a deferral or an accrual.
Premises:
Property taxes that have been incurred but that have not yet been paid or recorded amount to $1,034.
Services totaling $690 have been performed but not yet recorded or billed.
Salaries earned by employees by year end but not yet paid or recorded amounted to $1,655.
Legal fees of $2,890 were collected in advance.By year end,70 percent were still unearned.
Prepaid Insurance had a $900 balance prior to adjustment.By year end,25 percent was still unexpired.
Unrecorded interest on savings bonds is $765.
Responses:
Deferral
Accural
Correct Answer:
Premises:
Responses:
Property taxes that have been incurred but that have not yet been paid or recorded amount to $1,034.
Services totaling $690 have been performed but not yet recorded or billed.
Salaries earned by employees by year end but not yet paid or recorded amounted to $1,655.
Legal fees of $2,890 were collected in advance.By year end,70 percent were still unearned.
Prepaid Insurance had a $900 balance prior to adjustment.By year end,25 percent was still unexpired.
Unrecorded interest on savings bonds is $765.
Premises:
Property taxes that have been incurred but that have not yet been paid or recorded amount to $1,034.
Services totaling $690 have been performed but not yet recorded or billed.
Salaries earned by employees by year end but not yet paid or recorded amounted to $1,655.
Legal fees of $2,890 were collected in advance.By year end,70 percent were still unearned.
Prepaid Insurance had a $900 balance prior to adjustment.By year end,25 percent was still unexpired.
Unrecorded interest on savings bonds is $765.
Responses:
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