Below are two unrelated situations relating to life insurance. Required: Prepare the appropriate journal entry for each
Question:
Below are two unrelated situations relating to life insurance.
Required:
Prepare the appropriate journal entry for each situation.
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 value increased during the year from $2,500 to $4,600.
2. Petroleum Corporation received a $250,000 life insurance settlement when its CEO died. At that time, the cash surrender value was $16,000.
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Requirement 1 Insurance expense difference 22900 Cash surrender value ...View the full answer
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