IJ Company purchased a P2,000,000 ordinary life insurance policy on its president and the company is the named beneficiary. Additional data are available for the year ended December 31, 2019: Cash surrender value, January 1 P87,000 Cash surrender value, December 31 108,000 Annual premium paid in advance on January 1 40,000 Dividend received on July 1 6,000 How much should JJ Company report as life insurance expense for 2019?
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.
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A: The correct answer is Option (c).
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A: This is an income computation question, please refer to step two to see the answer.
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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…
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A: Insurance expenses are incurred by the policyholder.
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- On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.Property Taxes Family Practice Associates has an estimated property tax liability of 7,200 assessed as of January 1,2019, for the year May 1, 2019, to April 30, 2020. The property tax is paid on September 1, 2019. The property tax becomes a lien against the property on May 1. Required: 1. Prepare the necessary monthly journal entries to record the preceding information for the period from May 1 to September 30, 2019 (assuming actual taxes are the same as estimated). 2. What would be the amount of the liability on December 31, 2019?On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000
- 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. P105,000ABC 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 170,000Gregorio 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
- Several years ago. Iris 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 - 117,000 Annual premium paid in advance on January 1, 2020 - 50,000 Life insurance expense recognized in the statement of comprehensive income for the year ended December 31, 2020 - 38,000How much must have been the cash surrender value of life insurance at Iris's December 31. 2020 financial statements? A.12,000 B. 117,000 C. 129,000 D. 105,000Silver Company purchased a 2,000,000 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: January 1 - 87,000; December 31 - 108,000 Annual premium paid in advance on January 1 - 40,000 Dividend received on July 1 - 6,000How much is Silver Company’s life insurance expense for 2020? A. 40,000 B. 34000 C. 19,000 D. 13,000Tandang 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 24,000
- The Revenue Account of a life insurance company shows the life assurance fund on 31st March, 2020 at $5,000,000 before taking into account the following items: -Claims covered under re-insurance $12,000.- Bonus utilized in reduction of life insurance premium $4,500. -Interest accrued on securities $8,000.-Outstanding premium $5,000-Claims intimated but not admitted ` $26,000. What is the life assurance fund after taking into account the above omissions?13.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 the president. The policy year and accounting year coincide. Marital Company has a P5,000,000 ordinary life insurance policy The entity provided the following data for the year ended December 31, 2020: Cash surrender value, January 1 Cash surrender value, December 31 Annual advance premium paid-January 1 Dividend received -July 1 245,000 270,000 100,000 15,000 The entity is the beneficiary under the life insurance polie The insured died on January 2, 2021, after the payment of annual premium of P100,000 on January 1, 2021. What is the life insurance expense for 2020?