ment CALCULATOR FULL SCREEN Brief Exercise 4-7 On July 1, 2017, Oriole Company p

Question

ment CALCULATOR FULL SCREEN Brief Exercise 4-7 On July 1, 2017, Oriole Company pays $20,000 to Pharoah Company for a 2-year insurance contract. Both companies have fiscal years ending December 31 Your answer is partially correct. Try again. Journalize the entry on July 1 and the adjusting entry on December 31 for Pharoah Company. Pharoah uses the accounts Unearned Service Revenue and Ser entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Cr automatically indented when the amount is entered. Do not indent manually. Date Account Tities and Explanation Debit Credit ly 1Prepaid tnsurance 20000 Cash 20000 Dec. 31 ,Insurance Expense 5021 Prepaid Insurance 5021 SHOW LIST OF ACCOUNTS LINK TO TEXT INTERACTIVE TUTORIAL

Explanation / Answer

Date ACCOUNTS TITLES AND EXPLANATIONS DEBIT IN $ CREDIT IN $ 1-Jul cash Account 20,000    Unearned revenue Account 20,000 (for amount received in advance for service to be rendered) 31-Dec Unearned service revenue 5,000     Service revenue Account 5000 (for recognizing the revenue for 6 months) UNEARNED SERVICE REVENUE Dec31 Service revenue 5,000 July 1 Cash 20,000 Balance Dec 31 15000 SERVICE REVENUE Dec 31 Unearned revenue 5,000 balance Dec 31 5000

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