29. 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.
30. Prepare journal entries to record the following transactions for Ted's Garage:
a. Ted does extensive body work on Jim's auto, and sends Jim a bill for $1,700.
b. Ted receives Jim's check for $1,700.
c. Ted's mechanic earns $2,000 for a week's work. Ted pays him $1,800 after deducting $200 withholding taxes.
d. Ted prepares financial statements at the end of the month. He makes an accrual for $400 for unpaid salaries.