This question has two sections, please make sure to read both before answering. [ Section 1 ]

On July 1, 2020, Shamrock Co. pays $14,340 to Bridgeport Insurance Co. for a 3-year insurance policy. Both companies have fiscal years ending December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Bridgeport Insurance Co. Bridgeport uses the accounts Unearned Service Revenue and Service Revenue. Jul. 1 (debit) Cash...........$14,340 (credit) Unearned Revenue.......$14,340

Dec 31. (Debit) Unearned Revenue.........$2,320 (Credit) Service Revenue.............$2,320 [ Section 2 ] The unearned revenue was calculated as: (14,340 / 3 years) then (4,780 * 6) months and finally (28,680 / 12 months) I'm confused as to why was it calculated this way. I understand why $14,340 was divided by the number of years, but I'm confused why later we multiply it by 6 months and later divided it by 12months. Isn't $4,780 a yearly expense and not a monthly expense? Why multiply it by 6 months and then divided it by 12 months? Why wasn't the yearly expense of $4,780 directly divided by 12 months instead? Would appreciate the feedback!