Question
Below are two unrelated situations pertaining to life insurance. Ford Corporation owns a whole life insurance policy on the life of its president. Ford Corporation
Below are two unrelated situations pertaining to life insurance.
- Ford Corporation owns a whole life insurance policy on the life of its president. Ford Corporation is the beneficiary. The insurance premium is $34,500. The cash surrender value increased during the year from $4,400 to $8,400.
- Petroleum Corporation received a $440,000 life insurance settlement when its CEO died. At that time, the cash surrender value was $25,500.
Required: Prepare the appropriate journal entry for each situation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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Auditing Theory And Practice
Authors: C. William Thomas, Bart Ward, Emerson Henke
3rd Edition
0534920748, 978-0534920746
