Question

On July 1, 2019, Sunland Co. pays $15,500 to Cheyenne Insurance Co. for a 4-year insurance contract. Both companies have fiscal years ending December 31. Journalize and post the entry on July 1 and the adjusting entry on December 31 for Cheyenne Insurance Co. Cheyenne uses the accounts Unearned Service Revenue and Service Revenue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to decimal places, eg,5,275.) Account Titles and Explanation Credit Date Debit Unearned Service Revenue Service Revenue

Answer 1

Credit 85,500 Date Acond Tillex and Explanatie. Debit July | Cash $ 15,500 Unearned Service Revenue Dee. 31 thearned Service Revenue $ 1938 Service Revenue * Dee. si ó Unearned Service Revenue El years $ 1938 6 $ 15.500 4 X 12 1938 Un earned Service Revenue Dec.31 $ 1938 $ 15 500 July-01 Dee. 31 8 13562 Service Revenue Dec. 31 1938