Question - A three year liability insurance policy was purchased on March 1, 20x1 for $6840.
A two-year fire insurance policy was purchased on April 1, 20x2 for 12,480.
a) Record the purchase of fire insurance policy on April 1, 20x2.
b) Record adjustment for insurance expense (hint: there are two policies as of 12/31/x2. Be sure to clearly provide calculations for each policy).