3. “paid but not “incurred but
“overdue”
incurred” not yet paid”
“paid in advance”
Prepaid Accrued
Expenses Expenses
ASSET Prepaid Exp Dr Expense Acc Dr LIABILITY
Expense Acc Cr Accrued Exp Cr
LIABILITY Rev acc Dr Accrued Rev Dr
Unearned Cr Rev acc Cr
Unearned Accrued
Revenue ASSET
Revenue
“earned but not
“received in “received but “the business yet received”
advance” not yet earned” is owed”
4. “paid but not “incurred but
“overdue”
incurred” not yet paid”
“paid in advance”
Prepaid Accrued
Expenses Expenses
ASSET Prepaid Exp Dr Expense Acc Dr LIABILITY
Expense Acc Cr Accrued Exp Cr
LIABILITY Rev acc Dr Accrued Rev Dr
Unearned Cr Rev acc Cr
Unearned Accrued
Revenue ASSET
Revenue
“earned but not
“received in “received but “the business yet received”
advance” not yet earned” is owed”