Continuing from the previous number and assuming further that P3,000,000 was received from the insurance, what is the journal entry to record the gain on settlement and make the final adjustment to the insurance expense?
Q: On January 2, 2009, Blake Co. sold a used machine to Cooper Inc. for P900,000 resulting to a gain of…
A: Sales revenue is the proceeds that is received from delivering goods and services. Sometimes, amount…
Q: What is the interest cost for 2023? b. What is the projected benefit obligation on December 31,…
A:
Q: On July 1, 2020, ATLAS grants a 5-year P5,000,000 non-interest bearing advance to its president The…
A: Present value is the sum of the current value of money of future cash flows. It is also known as a…
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: Papa, Inc. has a life insurance policy with its president as insured. Papa is the beneficiary of…
A: The correct answer is Option (c).
Q: Tati, a company engaged in selling factory machineries, uses the installment method. On December 31…
A: This is an income computation question, please refer to step two to see the answer.
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: Chain Co purchased 1M life insurance policy on its president, of which Chain is the beneficiary.…
A: Increase in cash surrender value should be treated as direct reduction in insurance premium of…
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: What is the journal entry on Dec. 31, 2014 to recognized the cash surrender value and adjust the…
A: Journal: It is the first step of recording financial transactions. It is used to prepare the…
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: 300,000. The employee is expected to retire in 10 years and the salary increases are expected to…
A: The calculation is given as,
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: On January 1,2020, ABC Company insured the life of its president for P 7,000,000, with an annual…
A: Life expense for the year = Amount of insurance premium paid
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: Silver Company purchased a 2,000,000 ordinary life insurance policy on its president and the company…
A: The cost of obtaining an insurance contract, as well as any outstanding monthly premium charges on…
Q: Rachel Company has established a defined benefit pension plan for its employees. Annual payments…
A: The question is related to Employees benefits. The employee benefits in which the employer do…
Q: The company bought kitchen equipment (a commercial oven) for $29,000 on November 1, 2021 and signed…
A: Cashflow Statement - It is type of financial documents provides the details of cash inflows and cash…
Q: In year 0, Javens Incorpe $507,000 and Javens'sa paid Javens $65,000 im six years beginning in ye
A: In this question, we have to compute the character gain recognition. For calculating realized amount…
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: On Jan. 1, 2021, ABC Publishing House exchanged its copyright over a book for one over an artwork.…
A: Book value is the value at which the asset is originally purchased or the value after depreciation.…
Q: any has established a defined benefit pension plan for its employees. Annual payments under the…
A: Company has to make provisions for the pension o the employee and has to make provision for that.
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: Jade Larson Antiques owes $20,000 on a truck purchased for use in the business. Assume the company…
A:
Q: On January 1, 20x1, ABC Co insured the life of one of its key management personnel for P5,000,000.…
A: Definition: Journal: Journal is the method of recording monetary business transactions in…
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: 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 Jan. 1, 2010, ABC entered into an insurance contract covering the life of its founder. The…
A: Cash surrender value to be recognized at the end of December 31, 2014 is P 80,000 On that date the…
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: . What is the journal entry on Dec. 31, 2014 to recognized the cash surrender value and adjust the…
A: Journal: It is the first step of recording financial transactions. It is used to prepare the…
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: Edible Chemicals Corporation owns a $4 million whole life insurance policy on the life of its CEO,…
A:
Q: Rachel Company has established a defined benefit pension plan for its employees. Annual payments…
A: SOLUTION PENSION IS A TAX EFFICIENT WAY TO PUT MONEY ASIDE FOR LATER IN LIFE TO PROVIDE INCOME FOR…
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: In 2015, Maine Corporation bought a $5,000,000 life insurance policy on its president, of which…
A: Insurance expense is described as that amount of insurance coverage which has expired during the…
Q: Hunter Corporation pays an annual insurance premium of $8,500 to cover the lives of its board…
A: The cash surrender value seems to be the sum the policyholder will receive from the insurance…
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: In 2015, Charm Company purchased a P5,000,000 life insurance policy on its president, of which Charm…
A: Solution- Advance premium paid 200000 Add opening cash surrender value 435000 635000…
Q: On Jan. 1, 2010, ABC entered into an insurance contract covering the life of its founder. The…
A: Journal: It is the first step of recording financial transactions. It is used to prepare the…
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: On December 31, 2020, Stormy & Co. started a defined benefit plan for its president. The plan…
A: In the given question, Stormy & Co. started a defined benefit plan for its president. The plan…
Q: On Jan. 1, 2010, ABC entered into an insurance contract covering the life of its founder. The…
A: The cash surrender value of a policy or annuity is the amount of money paid by an insurance company…
Q: On January 1,2020, ABC Company insured the life of its president for P 7,000,000, with an annual…
A: Formula: Change in cash surrender policy = Current year amount - previous year amount.
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 Value
2014 P80,000
2015 100,000
2016 130,000
2017 180,000
Continuing from the previous number and assuming further that P3,000,000 was received from the insurance, what is the
Step by step
Solved in 2 steps with 1 images
- On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)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 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?
- 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.Tandang Sora Corp. purchased a P5,000,000 ordinary life insurance policy on its president. Tandang Sora is the beneficiary under the policy. The policy year and Tandang Sora's accounting year coincide. Additional data available for the year ended December 31, 2024 are as follows: Cash surrender value, January 1 Cash surrender value, December 31 Annual advance premium paid January 1 Dividend received on July 1 What amount should be reported as life insurance expense for 2024? 348,000 432,000 160,000 24,000Gregorio Corp. purchased a P5,000,000 ordinary life insurance policy on its president. Gregorio is the beneficiary under the policy. The policy year and Gregorio' accounting year coincide. Additional data available for the year ended December 31, 2023 are as follows: Cash surrender value, January 1 Cash surrender value, December 31 Annual advance premium paid January 1 Dividend received on July 1 What amount should be reported as life insurance expense for 2023? P228,000 290,000 120,000 15,000
- 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?ABC Company insured the life of one of its officers. Yearly premium amount to P 75,000. At the end of 2020, cash surrender value of the policies totaled P 200,000. Dividends received by ABC from the insurance company amounted to P 10,000 in 2020. The insurance expense recognized by ABC in 2020 was P 45,000. How much was the cash surrender value of life insurance at the beginning of the year? a. P 230,000 b. P 180,000 c. P 220,000 d. P 170,000In 2015, Charm Company purchased a P5,000,000 life insurance policy on its president, of which Charm is the beneficiary. Information regarding the policy for the year ended December 31, 2019 follows: Cash surrender value, January 1 - P435,000; Cash surrender value, December 31 - P540,000; Annual advance premium paid January 1 - P200,000. During 2019, dividends of P30,000 were applied to increase the cash surrender value of the policy. What amount should Charm report as life insurance expense for 2019?
- Several years ago. PEPA Company purchased a P3,000,000 ordinary life insurance policy on its president and the company is the named beneficiary. Additional data are available for the year ended December 31, 2020.Cash surrender value of life insurance, December 31, 2020 - P117,000 Annual premium paid in advance on January 1, 2020 - P50,000 Life insurance expense recognized in the statement of comprehensive income for the year ended December 31, 2020 - P38,000How much must have been the cash surrender value of life insurance at PEPA's December 31. 2020 financial statements? a. P 12,000 b. P117,000 c. P129,000 d. P105,000In 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?Del 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 2023