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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
What is the economic theory that is the opposite of capitalism? Answer command economy market economy socialism competition
Answers (1)
If you could make an online clothing business, what would be your mission and vission staement?
Answers (1)
The three primary reasons that people become entrepreneurs and start their own firms are to: a. gain prestige, realize financial rewards, and eliminate risk in their lives b. be their own boss, pursue their own ideas, and realize financial rewards c.
Answers (2)
Brenda owns 100 percent of Walker Corp. She has a basis for her stock of $20,000. The corporation's only assets are cash of $20,000 and land with a basis of $75,000 and a value of $95,000. Earnings and profits are $125,000. Walker Corp.
Answers (1)
Is it consistent to favor the free exchange of goods within a nation but to support trade restrictions on imported products?
Answers (1)
New Questions in Business
If supply increases while demand decreases A. the equilibrium quantity will definitely increase. B. the equilibrium price will definitely decrease. C. the equilibrium quantity will definitely decrease. D.
Answers (1)
To sit next to her mother at a restaurant, diana pushes her little brother mark out of the way. what type of aggression is this?
Answers (1)
Roger Technologies invests $50,000 to acquire $50,000 face value, 8%, five-year corporate bonds on January 2, 2017. The bonds will mature on January 2, 2022. The bonds pay interest semiannually on January 2 and July 2 each year until maturity.
Answers (1)
At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. During the year, the company reported total revenues of $226,000 and expenses of $175,000.
Answers (1)
Company X failed to record (accrue) $5,000,000 of vendor invoices and warranty liability at year-end. With this omission, the company's summary financial statements were stated as follows:Summarized Income StatementSales $50,000,000All Cost (incl.
Answers (1)