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On July 1, 2022, Sheridan Co. pays $21,800 to Windsor 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 annual adjusting entry on December 31 for Windsor Insurance Co. Windsor uses
the accounts Unearned Service Revenue and Service Revenue.

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  • 1. On July 1, 2022, Sheridan Co. pays $21,800 to Windsor 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 annual adjusting entry on December 31 for Windsor Insurance Co. Windsor uses the accounts Unearned Service Revenue and Service Revenue.