The balance of the cash surrender value of life insurance policy maintained on the life of the president decreased from 115,000 to 80,000 during the year. The company pays an annual insurance premium of P110,000 on this policy. Assume that the company has the sole right to cancel this policy, life

Q: Bramble Company owes $236,000 plus $21,500 of accrued interest to Sunland State Bank. The debt is a…

A: a. Prepare journal entries for Bramble Company and Sunland State Bank to record this debt…

Q: Kwell Co. owes Kuto Bank P4,000,000 plus accrued interest of P360,000. The unamortized discount on…

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Q: JJJ Company insured the life of its president for P2,000,000. The entity being the beneficiary of an…

A: SOLUTION- Insurance expenses are incurred by the policyholder.

Q: The records for Ivanhoe Co. show this data for 2021: ● Gross profit on installment sales…

A: Generally Accepted Accounting Principles states that the installment method of accounting for…

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A: Debt settlement: A way to settle the debt or resolve the debt by allowing the debtor to pay a lump…

Q: On January 1,2016 , Coke Company insured the life of its president for P4,000,000, with an annual…

A: Given: - Cash surrender value at the end of 2019= 49,000 Cash surrender value at the end 2020=…

Q: Nakasiguro Company insured its president for P 5,000,000 with an annual premium, paid initially at…

A: The insurance taken here is the key insurance by Nakasiguro company for its president P, to avoid…

Q: 2023 P 60,000 P 5,000 2024 72,000 3,000 2025 84,000 - 2026 92,000 4,000

A: B. - 4,874,000

Q: 3. On January 2, 2019, the corporation insured the life of its president for P2,000,000. The…

A: Insurance: It is the agreement between the insurance company which called insurer and person…

Q: On January 2021, ABC Co. insured the life of one of its key management personnel for 1,300,000. ABC…

A: Step 1 Journal is the Part of Book Keeping.

Q: ABC Corporation ensures the life of its Chief Executive Officer for P3,000,000, indicating the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: On January 1, 2015, Crane Company purchased a P4,000,000 ordinary life insurance policy on its…

A: Solution:   Life Insurance Expense for 2018   Annual Insurance premium paid on Jan1,2018…

Q: ABC Corporation insures the life of its Chief Executive Officer for P3,000,000, indicating the…

A: Surrender value in insurance is the amount of cash that has to be paid by the insurance company to…

Q: purchased a P5,000,000 life insurance policy on its president, of which Charm is the beneficiary.…

A: Advance premium paid     200000 Add : opening cash surrender value   435000     635000…

Q: Edible Chemicals Corporation owns a $4 million whole life insurance policy on the life of its CEO,…

A: Calculate the cash surrender value to be recorded.

Q: Use the following information for questions 6 and 7: On December 31, 2018, Garnel Co. is in…

A: Net book value of the Equipment = Original cost - Accumulated depreciation Gain (loss) on the…

Q: Use the following information for questions 6 and On December 31, 2018, Garnel Co. is in financial…

A: Net book value of the Equipment = Original cost - Accumulated depreciation Gain (loss) on the…

Q: Below are two unrelated situations relating to life insurance.Required:Prepare the appropriate…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: ABC Corporation insures the life of its Chief Executive Officer for P3,000,000, indicating the…

A: The life insurance policy is a contract between two parties called insurer and insuree. The insurer…

Q: Strickland Company owes $200,000 plus $18,000 of accrued interest to Moran State Bank. The debt is a…

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Q: ABC Corporation insures the life of its Chief Executive Officer for P3,000,000, indicating the…

A: The insurance firm (insurer) and the individual enter into a legal agreement known as insurance…

Q: Edible Chemicals Corporation owns a $4 million whole life insurance policy on the life of its CEO,…

A:

Q: On January 1, 2008, Rex Co. sold a used machine to Lake, Inc. for P525,000. On this date, the…

A: This question deals with the installment sales method. In installment sales method, gross profit is…

Q: The records for Pharoah Co. show this data for 2021: ●   Gross profit on installment sales recorded…

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Q: ABC Company insured the life of one of its officers. Yearly premium amount to P 75,000. At the end…

A: Surrender value of Policy: Give up esteem is the sum that a policyholder gets from the existence…

Q: Continuing from the previous number and assuming further that P3,000,000 was received from the…

A: Journal:   It is the first step of recording financial transactions. It is used to prepare the…

Q: On January 1, 20x1, ABC Co insured the life of one of its key management personnel for P5,000,000.…

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Q: The executor of Rose Shield's estate listed the following properties (at fair value): Cash $ 300,000…

A: Introduction: A journal entry is a record of a business arrangement in the accounting system of a…

Q: December 31, 2020. Cash surrender value of life insurance, December 31, 2020 -

A: Life insurance seems to be an agreement between an insurance policy owner as well as an insurance…

Q: ABC Corporation insures the life of its Chief Executive Officer for P3,000,000, indicating the…

A: The amount business spends on insurance will affect the numbers on balance sheet, but balance sheet…

Q: The balance of the cash surrender value of life insurance policy maintained on the life of the…

A: Expenses means the amount spent on running the business where as income means the amount earned…

Q: Chilli Inc. insured the life of its president for P8,000,000, the corporation being the beneficiary…

A: The calculation of gain on the life insurance policy is as follows: Insurance policy   P8,000,000…

Q: On December 31, 2012, Nolte Co. is in financial difficulty and cannot pay a note due that day. It is…

A: Gain (loss) on the transfer of the equipment =  Fair value of equipment -  face amount of the note

Q: 7. In its 2019 Profit and Loss, how much expense should be reported for the compensated absences? *…

A: IAS 19 "Employees benefit" deals with the concept of all the benefits that provided to employees…

Q: ABC Company insured the life of one of its officers. Yearly premium amount to P 75,000. At the end…

A: Explanation: The cash surrender value refers to the amount of money a policyholder or an annuity…

Q: Garrulous Company insured the life of the president for P2,000,000, the entity being the beneficiary…

A: Solution A journal is a company's official book in which all business transaction are recorded in…

Q: Jelline Company insured the life of its president for P2,000,000, the entity being the beneficiary…

A: Life insurance protects your loved ones' future by providing a lump sum payment in the event of a…

Q: Turner Inc. provides a defined benefit pension plan to its employees. The company has 150 employees.…

A: Note: As per our guidelines, only the first three subparts will be answered.   1. Prior Service Cost…

Q: Sunland Company self-insures its property for fire and storm damage. If the company were to obtain…

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Q: 2. On January 1, 2015, Crane Company purchased a P4,000,000 ordinary life insurance policy on its…

A: To calculate the life insurance expense for the year 2018, first we need to determine the change in…

Q: On January 1, 2022, AA Company received cash of P1,000,000 and a 4-year, oninterest bearing note to…

A: Solution Given Life of note 4 years Amount to be collected every year 600000…

Q: On January 1, 2020, Leo paid $15,000 for 5 percent of the stock in BLS, an S corporation. In…

A: Promissory note is the instrument which is promised by the buyer to pay the decided amount after a…

Q: The President died April 1, 2026. How much is the Cash Surrender Value be reported, before any…

A: Cash surrender value :it is the total amount to be paid by the insurance company to the policy…

Q: JJ Company insured the life of its president for P2,000,000. The entity being the beneficiary of an…

A: Insurance expenses are incurred by the policyholder.

Q: Sheffield Corporation is in the business of selling cattle. Due to recent diseases plaguing cattle,…

A: Formula would be, Present Value = +PV (Rate, period,, Future Value)