Martin Towing Company is at the end of its accounting year, December 31, 2014. The following data that must be considered were developed from the company?s records and related documents: On January 1

1. Deferred expense - Depreciation expense for the hauling van purchased on January 1, 2014 has not been recorded for the year 2014. 2. Accrued expense - Office supplies purchased during 2014 have not been fully used up, and therefore, the amount remaining on December 31, 2014, needs to be recorded as an expense. 3. Accrued expense - The repair cost of $1,000 completed by Lanie's Garage on December 31, 2014, is not yet recorded, and therefore, it needs to be accrued as an expense. 4. Deferred expense - Property taxes estimated at $1,330 for the land owned during 2014, have not yet been paid and need to be deferred until they are billed. 5. Accrued revenue - The company completed a contract for $6,200 on December 31, 2014, but no cash has been collected, and therefore, the revenue needs to be accrued. 6. Deferred expense - The insurance premium of $840 paid on July 1, 2014, applies to the next three years, and therefore, needs to be deferred and recorded as an expense over the three-year period of coverage. 7. None of the transactions listed relates to deferred revenue. Explanation: Deferred revenue refers to the advance receipt of cash for products or services that are yet to be provided. Deferred expense refers to the advance payment for an expense that belongs to the future accounting period. Accrued revenue refers to revenue earned already but not yet billed or collected, while accrued expense refers to an expense incurred already but not yet paid. From the transactions given, the depreciation for the hauling van is an expense that has not been recorded yet; hence it is a deferred expense. Office supplies amounting to $900 were purchased, but not fully used up. As such, the count of the supplies remaining on hand on December 31, 2014, was $370, which needs to be recorded as an expense, making it an accrued expense. The repair cost incurred by Lanie's Garage of $1,000 is yet to be recorded, so it is an accrued expense. The property taxes on land estimated at $1,330 for 2014 will not be paid until the next accounting period, so it needs to be deferred by using a deferred expense. The company has completed the job for $6,200, but the payment is not yet collected or recorded, making it an accrued revenue. The insurance premium paid on July 1, 2014, spans a period of three years, and so it needs to be deferred using deferred expense representation. Finally, none of the given transactions relates to deferred revenue.