On July $1,2025,$ Sheridan Co$.$ pays $$20,400$ to Culver Insurance Co$.$ for a $2-$year insurance contract. Both companies

have fiscal years ending December $31.$

$($a$1)$

$($a$2)$

$x$ Your answer is incorrect.

Post the entry on July $1$ and the adjusting entry on December $31$ for Culver Insurance Co$.($Post entries in the

order of journal entries presented in the previous part.$)$

Service Revenue