Edible Chemicals Corporation owns a $4 million whole life insurance policy on the life of its CEO, naming Edible Chemicals as beneficiary. The annual premiums are $70,000 and are payable at the beginning of each year. The cash surrender value of the policy was $21,000 at the beginning of 2018.
Required:
1. Prepare the appropriate 2018 journal entry to record insurance expense and the increase in the investment assuming the cash surrender value of the policy increased according to the contract to $27,000.
2. The CEO died at the end of 2016. Prepare the appropriate journal entry.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Edible Chemicals Corporation owns a $4 million whole life insurance policy on the life of its CEO, naming Edible Chemicals as beneficiary. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Select the correct answer. Jerry owns a small business. He has recently entered a franchise contract with a beverage company. According to the contract, Jerry's business can use the beverage company's logos and trademarks.
Answers (1)
When the price level rises, the number of dollars needed to buy a representative basket of goods: A. increases, and so the value of money rises. B. increases, and so the value of money falls. C. decreases, and so the value of money rises. D.
Answers (1)
A purchase of supplies for cash is recorded in the a. cash payments journal. b. purchases journal. c. general journal. d. cash receipts journal.
Answers (1)
The scale of a timeline is generally unimportant.
Answers (1)
If the government wishes to increase the level of real GDP, it might reduce:
A. Taxes
B. Transfer payments
C. The size of the budget deficit
D. Its purchases of goods and services
Answers (1)
New Questions in Business
Which of the following characteristics would lead the auditor to assess control risk at a higher level? a. It is difficult for the auditor to determine or gain access to the organization or individuals who own and/or control the entity. b.
Answers (1)
The reason for the Fed being set up as an independent agency of government is to:
Answers (1)
Headings in reports that describe the content of the section and may even give a conclusion about the section are called:
Answers (1)
Coronado Company purchased land for $80,000. The company also paid $12,000 in accrued taxes on the property, incurred $5,000 to remove an old building, and received $2,000 from the salvage of the old building.
Answers (1)
Trueview video ads can be especially effective for driving what goals?
Answers (1)