On July $1,2025,$ Wildhorse Co$.$ pays $$16,800$ to Monty Insurance Co$.$ for a $2-$year insurance contract. Both companies have fiscal

years ending December $31.$

$($a$1)$

Your answer is correct.

Journalize the entry on July $1$ and the adjusting entry on December $31$ for Monty Insurance Co$.$ Monty 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

$16,800$

Unearned Service Revenue

Unearned Service Revenue

Service Revenue

eTextbook and Media

List of Accounts

Attempts: unlimited

$($a$2)$

Your answer is partially correct.

Post the entry on July $1$ and the adjusting entry on December $31$ for Monty Insurance Co$.($Post entries in the order of journal entries

presented in the previous part.$)$

Unearned Service Revenue

Service Revenue