On January 1, 2006 Kehoe Corporation insured the lives of its president, vice president, controller, and treasurer

Question:

On January 1, 2006 Kehoe Corporation insured the lives of its president, vice president, controller, and treasurer for $100,000 each. The annual premium on each policy is $4,200, payable on January 1 of each year, and the cash surrender values for the policies increase by 4% of the annual premiums paid. Premium payments were made on the scheduled date by the Kehoe Corporation through 2008, and the following dividends were received at the end of the year on each policy: 2006, $450; 2007, $575; 2008, $550. On February 1, 2009 the treasurer died and Kehoe Corporation collected the face value of his policy plus 11 months’ premium.

Required

Prepare journal entries to record the preceding information for the years 2006 through 2009.

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... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...