Question

tice Assignment Gradebook ORION Downloadable eTextbook ment CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK Question 4 On July 1, 2022, Sheridan Company pays $12,500 December 31. 2-year Insurance contract. Both companies have fiscal years ending Your answer is partially correct. Try again. Journalize the entry on July 1 and the adjusting entry on December 31 for Oriole Company, Oriole 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 o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Credit Debit 12500 1 July 1 Prepaid Insurance Cash TIT INT HERRE Dec. 31 Insurance Expense Prepaid Insurance SHOW LIST OF ACCOUNTS LINK TO TEXT 200022 Sonn inhts Resed. A Didinfo .se

Answer 1

Journal entries
Date	Particulars		Debit	Credit
July 1	Cash	Dr.	$   12,500
	Unearned Service Revenue			$12,500
	(To record receipt of unearned service revenue )
Dec 31	Unearned Service Revenue (12500/2=6250/2)	Dr.	$     3,125
	Service Revenue			$3,125
	(To record deferred revenue now eaned )

2. T- Accounts
Unearned Service Revenue
12/31	$                 3,125	$                12,500	7/1
		$                  9,375	12/31 Bal.
Service Revenue
		$                  3,125	12/31

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