On July $1,2022,$ Ivanhoe Company pays $$12,648$ to Sheridan Company for a $2-$year insurance contract. Both companies have fiscal years ending December $31.$

For Ivanhoe 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

Account Titles and Explanation

Debit

Credit

Prepaid Insurance

Cash

Insurance Expense

Prepaid Insurance

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List of Accounts

For Ivanhoe 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

Insurance Expense