On July $1,2022,$ Carla Vista Co$.$ pays $$11,904$ to Sheridan Company for a $2-$year insurance contract. Both companies have fiscal years ending December $31.$

For Carla Vista Co$.,$ journalize the entry on July $1$ and the annual adjusting entry on December $31.($Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually.$)$

Date Account Titles and Explanation

Debit

Credit