On July 1, 2017, Riverbed Co. pays $20,160 to Marin Insurance Co. for a 4-year i

Question

On July 1, 2017, Riverbed Co. pays $20,160 to Marin Insurance Co. for a 4-year insurance policy. Both companies have fiscal years ending December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Marin Insurance Co. Marin uses the accounts Unearned Service Revenue and Service Revenue

I am facing a challenge with my account assignment, May you please help me.

Date

Account Titles and Explanation

Debit

Credit

July 1 Cash 20160

Unearned service 20160

Dec 31 Unearned service ?

service Revenue ?

Date

Account Titles and Explanation

Debit

Credit

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Dr Cr July 01 Cash Dr               20,160.00 To Unearned Service Revenue               20,160.00 Dec 31 Unearned service revenue Dr                 2,520.00 To Service revenue                 2,520.00 (20,160/4*2)

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