On July 1 2014Deng Co pays 13200 to Nance Insurance Co for 1

On July 1, 2014,Deng Co. pays $13200 to Nance Insurance Co. for 1 year insurance contract. Both companies have physical years ending December 31.
Journalist the entry on July 1 and the adjusting entry on December 31 for Nance Insurance Co. Nance uses the accounts Unearned Service Revenue and Service Revenue.

Solution

Date General Journal Debit Credit July 1 Cash $13,200 Unearned service revenue $13,200 Dec. 31 Unearned service revenue $6,600 Service revenue $6,600