Question

On July 1, 2017, Ivanhoe Company pays $13,000 to Sunland Company for a 2-year insurance contract. Both companies have fiscal years ending December Journalize the entry on July 1 and the adjusting entry on December 31 for Sunland Company, Sunland uses the accounts Unearned Service Revenue and Service Revenue. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry for the account titles and enter for the amounts Credit account titles are automatically indented when the amount is entered. Do not indent manually Date Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts Post the entry on July 1 and the adjusting entry on December 31 for Sunland Company. (Post entries in the order of journal entries presented in the previous part) Unearned Service Revenue Service Revenue

Answer 1

Journal Entries Date Account Title and Explaination Debit Credit Post. Ref. Jul.1 $ 13,000.00 Cash Unearned Service Revenue (To record cash received for service to be performed) $ 13,000.00 3,250.00 Dec.31 Unearned Service Revenue ($13000/24months x 6months) Service Revenue (To record Earned portion of unearned service revenue) 3,250.00

Unearned Service Revenue Jul.1 $ 13,000.00 Dec.31 $ 3,250.00 Concarned sapili kapan 13,000.00 Service Revenue Dec.31 $ 3,250.00