(solution) On July 1, 2014, Seng Co. pays $12,400 to Nance Insurance Co, for

(solution) On July 1, 2014, Seng Co. pays $12,400 to Nance Insurance Co, for

On July 1, 2014, Seng Co. pays $12,400 to Nance Insurance Co, for a 2 yr insurance contract. Both companies have fiscal years that ending December 31. Journalize the entry from July 1 and the adjusting entry on December 31 for Nance Insurance Co. Nance uses the accounts unearned service revenue and service revenue. Also post the entry on July 1 and the adjusting entry on December 31 for Nance Insurance Co.