On July 1, 2022, Blossom Company pays $15,624 to Sheridan Company for a 2-year insurance contract. Both companies have fiscal years ending December 31.

For Blossom Company, 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 Debit Credit Account Titles and Explanation Unearned Service Revenue July 1 15624 1562 Dec. 31 Unearned Service Revenue 3906 Service Revenue 390 For Blossom Company, post the entry on July 1 and the annual adjusting entry on December 31. (Post entries in the order of journal entries presented in the previous part.) Prepaid Insurance 12/31 3906 7/1 15624 Insurance Expense 12/31 3906