What is the journal entry on Dec. 31, 2014 to recognized the cash surrender value and adjust the related accounts? Parenthetical solutions would suffice.
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: 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, 2020, X company acquired an equipment for P1,000,000 payable in 5 annual equal…
A: On January 1, 2020, X company acquired an equipment for P1,000,000 payable in 5 annual equal…
Q: Bygone Company manufactures and sells computers. On January 1, 2021, the entity sold a computer…
A: Answer - Working Note : Calculation of Unearned interest Income : Particulars Amount Face…
Q: On October 1, 2019, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000.…
A: Maturity date of Note = Issue date + Period = October 1, 2019 + 1 years = October 1, 2020 No. of…
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: Oxford Company obtained a P5 million insurance policy on the life of its CEO on January 1, 2019. The…
A: 1. Insurance Expense in 2021. Total Premium paid - Income received this year and last year = 80,000…
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: y 2, 2022, Toyota sold a car to Irish for P1,050,000. On this date, the car cost P735,000. Irish…
A: The the car are sold on the installment than the present value of these installments would be the…
Q: On the first day of each month, Bell Company received from Kaye Company an escrow deposit of…
A: The term escrow means the holding of an asset or money by a third person or party before…
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: A company owes $20,000 on a truck purchased. Assume the company makes timely principle payments of…
A: Definition: Current portion of long-term notes payable: The principal amount of notes payable which…
Q: Western Foods purchased a 4,000,000 life insurance policy on the company president. The annual…
A: the life insurance expense for 2020= 96000-7000-1500 =$87,500
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: On January 1, 2018, King Inc. borrowed $190,000 and signed a 4-year, note payable with a 10%…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
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 December 31, 2019, Speedo’s Limited bought a yacht for $55,000, but made a down payment of…
A: Given, Cost of yacht= $55,000 Down payment =$10,000 Balance amount =$55000 -$10000 Balance amount…
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: Edible Chemicals Corporation owns a $4 million whole life insurance policy on the life of its CEO,…
A:
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: 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: Jade Larson Antiques owes $20,000 on a truck purchased for use in the business. Assume the company…
A:
Q: Jade Larson Antiques owes $20,000 on a truck purchased for use in the business. Assume the company…
A: Long-term notes payable: Long-term notes payable represent a legal and written promise made by the…
Q: On July 1, 2020 Walker Inc. signed a $600,000, 15 month, 10% note payable. At due date, the…
A: This is based on bill of exchange, in the given case since note is payable in 15 months and the same…
Q: On July 1, 2021, Guarin Co. obtained fire insurance for a three-year period at an annual premium of…
A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…
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: A company acquires assets recorded at $240,000 by paying $120,000 cash and taking on a 12 year…
A: Loan =240000-120000=120000/24=$5000 So instalment $5000 semi annual…
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: Among the account balance of Jeffrey Corporation at December 31, 2009 are the following: Patent…
A: A patent is an intangible asset shown on the balance sheet. It doesn't have any physical substance…
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: On April 1, 2019, Flamengo Co. signed a one-year, 8% interest-bearing note payable for $50,000.…
A: Since you have asked multiple questions we will solve the first question for you as per the policy.…
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: HANGANG Park has life insurance policies on its officers’ lives. Annual premiums amount to P50,000.…
A: The amount of money received when an insurance policy or annuity has been cancelled is known as cash…
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: 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, 2022, AA Company received cash of P1,000,000 and a 4-year, noninterest bearing note to…
A: A note receivable is a written commitment to receive a specified amount of money from another party…
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 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
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 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 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 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?Gregorio 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 15,00013.Papa, Inc. has a life insurance policy with its president as insured. Papa is the beneficiary of said policy. The annual premium is $ 5,000. As of December 31, 2020, the redeemable value of the policy cash (cash surrender value) is $ 18,200 (final balance). The insurance expense recognized in the Statement of Income and Expenses for the period ended December 31, 2020 was $ 4,000. What was the cash surrender value of this policy on January 1, 2020 (opening balance)? Select one: a. $ 11,200. b. $ 14,200. c. $ 17,200. d. $ 9,200.
- 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 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?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:On January 1, 2018, King Inc. borrowed $190,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $47,569 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.) If an amount box does not require an entry, leave it blank. Jan. 1 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 Dec. 31 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15
- On January 1, 2018, King Inc. borrowed $190,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $47,569 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.) If an amount box does not require an entry, leave it blank. Jan. 1 Cash ✔ Note Payable Dec. 31 Note Payable Interest Expense Cash ✓ ✔ ✓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, Charm Company purchased a P5,000,00o 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? *
