Prepare journal entries to record the following transactions regarding a fire insurance policy purchased by Chang Electronics.Chang's business operates on a calendar-year basis.
a.April 1,2013 - Chang arranges to buy fire insurance.He receives a bill for $10,000 for an insurance policy that covers the period April 1,2013 through March 31,2014.
b.April 10 - Chang pays the insurance bill.
c.December 31- Chang prepares financial statements for the year ended.December 31,2013.He prepares an adjusting entry regarding insurance.
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