7. LaBelle Corporation owns a $6.5 million whole life insurance policy on the life of its CEO, naming LaBelle as beneficiary. The annual premiums are $95,500 and are payable at the beginning of each year. The cash surrender value of the policy was $57,000 at the beginning of 2018.

Required: 1. Prepare the appropriate 2018 journal entry to record insurance expense and the increase in the investment, assuming the cash surrender value of the policy increased according to the contract to $70,500. 2. The CEO died at the end of 2018. Prepare the appropriate journal entry Journal entry worksheet Record the entry for insurance expenses and the increase in the investment. Note: Enter debits before credits Transaction General Journal Debit Credit nsurance expense Cash surender value of life insurance ash Record entry Clear entry View general journal Journal entry worksheet Record the proceeds of death Note: Enter debits before credits Transaction General Journal Debit Credit Cash Cash surrender value of life insurance Gain on life insurance settlement Record entry Clear entry View general journal