EX 3-1 Classifying types of adjustments Obj. 1, 2, Classify the following items as () accrued revenue, (b) accrued expense, (e) unearned revenue or (d) prepaid expense: 1. A two-year premium paid on insurance policy. 2. Fees earned but not yet received. 3. Fees received but not yet eamed. 4. Salary owed but not yet paid. 5. Subscriptions received in advance by a magazine publisher 6. Supplies on hand 7. Taxes owed but payable in the following period. 8. Utilities owed but not yet paid. EX 3-2 Classifying adjusting entries Obj. 1,2,3 The following accounts were taken from the unadjusted trial balance of Murray Co., a congres sional lobbying firm. Indicate whether or not each account would normally require an adjusting entry. If the account normally requires an adjusting entry, use the following notation to indicate the type of adjustment AE-Accrued Expense AR-Accrued Revenue PE-Prepaid Expense UR-Unearned Revenue To illustrate, the answer for the first account follows: Account Answer Accounts Receivable Normally requires adjustment (AR). Building Cash Common Stock Interest Receivable Land Prepaid Rent Salaries Payable Supplies Unearned Fees Wages Expense