1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Masteriza [31]
3 years ago
9

Edible Chemicals Corporation owns a $2 million whole life insurance policy on the life of its CEO, naming Edible Chemicals as be

neficiary. The annual premiums are $72,000 and are payable at the beginning of each year. The cash surrender value of the policy was $22,000 at the beginning of 2018.
1. & 2. Prepare the appropriate 2018 journal entries to record insurance expense and the increase in the investment assuming the cash surrender value of the policy increased according to the contract to $28,200. The CEO died at the end of 2018.
Business
1 answer:
Xelga [282]3 years ago
7 0

Answer:

1. Dr Insurance expense $65,800

Dr Cash surrender value of life insurance $6,200

Cr Cash $72,000

2. Dr Cash $2000,000

Cr Cash surrender value of life insurance $28,200

Cr Gain on life insurance settlement $1,971,800

Explanation:

1. & 2. Preparation of the appropriate 2018 journal entries to record insurance expense and the increase in the investment

1. Dr Insurance expense $65,800

($72,000+$22,000-$28,200)

Dr Cash surrender value of life insurance $6,200

($72,000-$65,800)

Cr Cash $72,000

2. Dr Cash $2000,000

Cr Cash surrender value of life insurance $28,200

Cr Gain on life insurance settlement $1,971,800

($2000,000-$28,200)

You might be interested in
For each of the following independent events, identify the account that would be debited and the account that would be credited.
My name is Ann [436]

Answer:

A. Received cash by issuing common stock

Debit: Cash

Credit: common stock

B. Received cash for services to be performed in the future.

Debit: Cash

Credit: unearned revenue.

C. Paid salaries payable

Debit: salaries payable

Credit: cash

D. Provided services on account.

Debit: accounts receivable

Credit: service revenue

E. Paid cash for operating expenses

Debit: operating expenses

Credit: cash

Explanation:

A. Received cash by issuing common stock

Debit: Cash

Credit: common stock

B. Received cash for services to be performed in the future.

Debit: Cash

Credit: unearned revenue.

C. Paid salaries payable

Debit: salaries payable

Credit: cash

D. Provided services on account.

Debit: accounts receivable

Credit: service revenue

E. Paid cash for operating expenses

Debit: operating expenses

Credit: cash

6 0
3 years ago
What is the difference between a traditional savings account and an online savings account
Rudiy27
In traditional savings account, you can withdraw money whenever you need it without a financial penalty. In online savings account, link to traditional or online checking accounts and you enter your banks routing number and account number on the application. You can also transfer money between linked accounts with online savings. (hope this helps:)
6 0
3 years ago
Forum question 1: Do you know of a situation in which a female staff person is referred to by her first name only (e.g., “See Jo
klemol [59]

umm screw tis it is odd amd very werid but this is stupid and very dumb and stupid why fo you even bote to be on brainlt this app is good but if ypu want t answer domething like this then talk y albert einstine oh wait hes dead lol ok so the answer is noting because it is hard andery not easy you van figurit out ursepf bye lol

5 0
3 years ago
What is a discretionary meaning?.
Fantom [35]

Discretionary meaning is the ability to make decisions based on one’s own judgement and experience. It involves the consideration of many factors, including ethical and moral considerations, and is often used in situations where there is no clear answer or the situation is complex.

What is Discretionary?
Discretionary
refers to a decision that is left up to you. You have the choice not to take regular baths; keep in mind, though, that your friends could perhaps disagree together on this. Bathing is a discretionary act. When money isn't set aside for a specific use, it's often referred to as discretionary. How discretionary funds should be used is up to the decision-makers in charge. The word discretion is the root of the word discretionary, which can be defined as "the right to decide stuff based on one's own judgement." If you're given a task to finish at your discretion, you can choose how to do it — as well as whether you want to do it at all.

To learn more about Discretionary
brainly.com/question/5722109
#SPJ4

8 0
1 year ago
Why are businesses working or failing in today's society?
Mumz [18]

Answer:

well in society today as corona virus grows so do prices which makes it harder for people to buy things they used to. Companies are starting to shut down do to people not being able to buy anything or not being able to afford things or the product is bad. Do to all of this companies are failing tho some are using this to their advantage and are thriving.

Explanation:

hope this helps

4 0
3 years ago
Other questions:
  • The last step in the marketing process often includes: collecting the cash from sales to consumers. developing a written report
    14·1 answer
  • Andalus Furniture Company has two manufacturing plants, one at Aynor and another at Spartanburg. The cost in dollars of producin
    10·1 answer
  • Having a low credit score can make it more difficult to: a obtain a car loan b open a new credit card c secure an apartment leas
    14·1 answer
  • What type of management decision was involved when Toyota Motor Co. announced a recall of millions of units of its cars because
    15·1 answer
  • In the context of performance appraisal dimensions and standards, the goal of meeting product specification standards is an exam
    6·1 answer
  • Compare and contrast the potential for a perfectly competitive firm and a monopolistically competitive firm to earn positive eco
    12·1 answer
  • The appropriations account of a governmental fund is credited when the budgetary accounts are closed. the budget is recorded. su
    15·1 answer
  • The accounting book or computer program where each day's transactions are first recorded is called a:
    15·1 answer
  • A roulette wheel in a casino has 38 slots. If you bet a dollar on a particular​ number, you'll win ​$30 if the ball ends up in t
    13·1 answer
  • You've decided to buy a house that is valued at $1 million. You have $150,000 to use as a down payment on the house, and you tak
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!