Garrulous Company insured the life of the president for P2,000,000, the entity being the beneficiary of an ordinary life policy. The annual premium is P60,000. The policy was dated January 1, 2020 and carried the following cash surrender value: End of policy year Cash surrender value 2020 2021 2022 2023 2024 60,000 84,000 116,000 00000 The entity followed the calendar year as the accounting period. The president died on June 30, 2024 and the policy was collected on July 31, 2024. Required: Prepare journal entries from January 1, 2020 to July 31, 2024.
Garrulous Company insured the life of the president for P2,000,000, the entity being the beneficiary of an ordinary life policy. The annual premium is P60,000. The policy was dated January 1, 2020 and carried the following cash surrender value: End of policy year Cash surrender value 2020 2021 2022 2023 2024 60,000 84,000 116,000 00000 The entity followed the calendar year as the accounting period. The president died on June 30, 2024 and the policy was collected on July 31, 2024. Required: Prepare journal entries from January 1, 2020 to July 31, 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 25P
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