On July $1,2022,$ Sheridan Co$.$ pays $$21,800$ to Wind sor Insurance Co$.$ for a $4-$year insurance contract. Both companies have fiscal years ending December $31.$

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

Date Account Titles and Explanation

Prepaid Insurance