Chilli Inc. insured the life of its president for P8,000,000, the corporation being the beneficiary of an ordinary life policy. The monthly premium is P18,000 payable every first day of the month. The policy is dated January 1, 2017 and carries the following cash surrender values: Cash surrender End of policy year value 2017 2018 2019 125,600 2020 140,000 2021 168,200 2022 201,800 The corporation follows the calendar year as its fiscal period. The president died on June 1, 2022. How much is the gain on life insurance policy?
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- On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000Del Pilar Inc. insured the life of its president for P5,000,000, the corporation being the beneficiary of an ordinary life policy. The monthly premium is P18,000 payable every first day of the month. The policy is dated January 1, 2019 and carries the following cash surrender values: End of policy year Cash surrender value 2019 2020 2021 2022 2023 2024 125,600 140,000 168,800 201,200 The corporation follows the calendar year as its fiscal period. The president died on October 31, 2024. What is the gain on life insurance policy? January 2023Balintawak Inc. insured the life of its president for P4,000,000, the corporation being the beneficiary of an ordinary life policy. The monthly premium is P22,500 payable every first day of the month. The policy is dated January 1, 2019 and carries the following cash surrender values: End of policy year 2019 2020 2021 2022 2023 2024 Cash surrender value 94,500 112,500 148,500 189,000 The corporation follows the calendar year as its fiscal period. The president died on October 1, 2024. What is the gain on life insurance policy?
- On Jan. 1, 2010, ABC entered into an insurance contract coveringthe life of its founder. The P100,000 annual insurance premium ispayable at the start of the year. By the end of the fifth year, theinsurance will have a cash surrender value and it was as follows forthe following years:Year Cash Surrender Value2014 P80,0002015 100,0002016 130,0002017 180,000 1. What is the journal entry on Dec. 31, 2014 to recognized thecash surrender value and adjust the related accounts?Parenthetical solutions would suffice. 2. If the founder died on Mar 31, 2017, what is the journalentry to update the cash surrender value on the said date? 3. Continuing from the previous number and assuming furtherthat P3,000,000 was received from the insurance, what isthe journal entry to record the gain on settlement and makethe final adjustment to the insurance expense?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.On January 1,2016 , Coke Company insured the life of its president for P4,000,000, with an annual premium of P120,000 payable in advance at the beginning of each year. The company is the designated beneficiary and has the right to cancel the policy at its own optionThe cash surrender value of the policy at the end of each policy year is as follows:Cash surrender value2016 - 02017 - 02018 - 36,0002019 - 49,0002020 - 62,000The president died on October 1, 2020. Coke Company's accounting year is the calendar year.How much is the life insurance expense for the year ended December 31, 2020? a. P120,000 b. P107,000 c. P 90,000 d. P 80,250
- On Jan. 1, 2010, ABC entered into an insurance contract coveringthe life of its founder. The P100,000 annual insurance premium ispayable at the start of the year. By the end of the fifth year, theinsurance will have a cash surrender value and it was as follows forthe following years: Year Cash Surrender Value2014 P80,0002015 100,0002016 130,0002017 180,000 a.) What is the journal entry on Dec. 31, 2014, to recognize thecash surrender value and adjust the related accounts?Parenthetical solutions would suffice. b )If the founder died on Mar 31, 2017, what is the journalentry to update the cash surrender value on the said date? c.) Continuing from the previous number and assuming furtherthat P3,000,000 was received from the insurance, what isthe journal entry to record the gain on settlement and makethe final adjustment to the insurance expense?On Jan. 1, 2010, ABC entered into an insurance contract coveringthe life of its founder. The P100,000 annual insurance premium ispayable at the start of the year. By the end of the fifth year, theinsurance will have a cash surrender value and it was as follows forthe following years: Year Cash Surrender Value2014 P80,0002015 100,0002016 130,0002017 180,000 A. What is the journal entry on Dec. 31, 2014 to recognized thecash surrender value and adjust the related accounts?Parenthetical solutions would suffice. B. If the founder died on Mar 31, 2017, what is the journalentry to update the cash surrender value on the said date? C. Continuing from the previous number and assuming furtherthat P3,000,000 was received from the insurance, what isthe journal entry to record the gain on settlement and makethe final adjustment to the insurance expense?On Jan. 1, 2010, ABC entered into an insurance contract covering the life of its founder. The P100,000 annual insurance premium is payable at the start of the year. By the end of the fifth year, the insurance will have a cash surrender value and it was as follows for the following years:Year Cash Surrender Value2014 P80,0002015 100,0002016 130,0002017 180,000 What is the journal entry on Dec. 31, 2014 to recognized the cash surrender value and adjust the related accounts? Parenthetical solutions would suffice.
- In 20x0, Chain, Inc. purchased a P1,000,000 life insurance policy on its president, of which Chain is the beneficiary. Information regarding the policy for the year ended December 31, 20x5 follows: Cash surrender value, 1/1/x5 - 87,000 Cash surrender value, 12/31/x5 - 108,000 Annual Avance Premium Paid 1/1/x5 - 40,000 During 20x5, dividends of P6,000 were applied to increase the cash surrender value of the policy. What amount should Chain report as life insurance expense for 20x5? Answer:In 2015, Maine Corporation bought a $5,000,000 life insurance policy on its president, of which Maine Corporation is the beneficiary. Information regarding the policy for the year ended December 31,2020 follows: Cash surrender value, 1/1/2020 : $435,000 Cash surrender value, 12/31/2020 : $540,000 Annual advance premium paid 1/1/2020 : $200,000 During 2020, dividends of $30,000 were applied to increase the cash surrender value of the policy. How much should be the life insurance expense for 2020?ABC Corporation insures the life of its Chief Executive Officer for P3,000,000, indicating the corporation as the beneficiary of an ordinary life policy. The annual premium of P100,000 is payable every January 2nd of the year. The policy is dated January 2, 2021, and carries the following cash surrender values: 2021 - 2022 - 2023 60, 000 2024 70, 000 2025 89, 200 2026 110,800 The corporation follows the calendar year as its fiscal period. President dies on September 30, 2026, and policy is collected on December 2, 2026. Determine the value of insurance expense on 2026.