On July 1, 2025, Ivanhoe Co. pays $18,960 to Martinez Insurance Co. for a 2-year insurance contract. Both companies have fiscal
years ending December 31.
(a1)
Your answer is partially correct.
Journalize the entry on July 1 and the adjusting entry on December 31 for Martinez Insurance Co. Martinez uses the accounts
Unearned Service Revenue and Service Revenue. (List all debit entries before credit entries. Record journal entries in the order
presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 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
July 1 Cash 18960 18960
Dec. 31 Unearned Service Revenue
Service Revenue