Below are two unrelated situations relating to life insurance Prepare the appropriate journal entry for each situation Required 1 Ford Corporation owns a whole life insurance policy on the life of its president Ford Corporation is the beneficiary The insurance premium is $25,000 The cash surrender ...

Requirement 1 Insurance expense difference 22900 Cash su ...

Below are two unrelated situations relating to life insurance. Prepare the appropriate journal entry for each situation.

Question:

Below are two unrelated situations relating to life insurance.
Prepare the appropriate journal entry for each situation.

Required:
1. Ford owns a whole life insurance policy on the life of its president. Ford is the beneficiary. The insurance premium is $25,000. The cash surrender value increased during the year from $2,500 to $4,600.
2. Petroleum received a $250,000 life insurance settlement when its CEO died. At that time, the cash surrender value was $16,000.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...