lanes Corp. insured the life of its CEO for P5,000,000. The corporation was the beneficiary of the lif olicy. The annual premium, which is paid every April 1, was P400,000. The policy was dated April 1, 201 nd carried the following cash surrender value: End of policy year March 31, 2020 March 31, 2021 March 31, 2022 March 31, 2023 March 31, 2024 March 31, 2025 Cash surrender value 400,000 600,000 810,000 900,000 he company follows the calendar year as its accounting period. The president died on June 30, 2024 an he face value of the policy was collected on July 30, 2024.
lanes Corp. insured the life of its CEO for P5,000,000. The corporation was the beneficiary of the lif olicy. The annual premium, which is paid every April 1, was P400,000. The policy was dated April 1, 201 nd carried the following cash surrender value: End of policy year March 31, 2020 March 31, 2021 March 31, 2022 March 31, 2023 March 31, 2024 March 31, 2025 Cash surrender value 400,000 600,000 810,000 900,000 he company follows the calendar year as its accounting period. The president died on June 30, 2024 an he face value of the policy was collected on July 30, 2024.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 25E
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Transcribed Image Text:Llanes Corp. insured the life of its CEO for P5,000,000. The corporation was the beneficiary of the life
policy. The annual premium, which is paid every April 1, was P400,000. The policy was dated April 1, 2019
and carried the following cash surrender value:
End of policy year
March 31, 2020
March 31, 2021
March 31, 2022
March 31, 2023
March 31, 2024
March 31, 2025
Cash surrender
value
400,000
600,000
810,000
900,000
The company follows the calendar year as its accounting period. The president died on June 30, 2024 and
the face value of the policy was collected on July 30, 2024.
Prepare the entries from 2019 to 2024.
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