Question

Current Attempt in Progress On July 1, 2017, Pharoah Company pays $15.000 to Blossom Company for a 2-year insurance contract. Both companies have fiscal years ending December 31 Journalize the entry on July 1 and the adjusting entry on December 31 for Blossom Company, Blossom 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 entero 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 List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer . 2

Answer 1

15,000 Answer' 9 Date ___Particulars Debit col credit c® July ! Cash AlC DI 15,000 To unearned service revenue |(Entry for receipt of insurance premium received by the company - aj the service is not provided yet full amounts is treated as unearned Service revenue) (Dec 31 unearned service revence AlC DO 7,500 (15,000 X 6112) To service revenue 7,500 (Entry for recognition of service revenue at the end of Dec - propostionate amount is recognised of revenue). 3) Posting Journal entries -unearned service revence Date particellars Amaunt (5) _Date I particulars Amount (5) Dec-31 service revenue 7,500 July.cl Cash 15,000 Dec-31 closing Balance T.soo 7.500 7 SOO I Date Service revence particulars I Amount (6) Date Dec-31 I particulars Unearned Service revenue I Amount ($) 7,500 Dec-31 closing Balance 7,500 7,500 7.500