Rusch Inc. purchased a $500,000 whole-life policy on its top executive in 2014. On January 1, 2020, the com- pany pays an insurance premium in the amount of $20,000. The premium of $20,000 paid in 2020 results in an increase in cash surrender value of $1,200 to a total cash surrender value of $5,500 at the end of 2020. Record the adjusting entry for the life insurance policy on December 31, 2020, assuming that the full payment made on January 1, 2020, increased prepaid insurance.. Referring to the information in Brief Exercise 14-113, assume that the executive dies at the end of 2020. Record the entry for the settlement of the policy, assuming that year-end adjusting entries had been recorded. App-Brief Exercise 14-113 Recording Cash Surrender Value LOB App-Brief Exercise 14-114 Recording Cash Surrender Value LOB Hint: See Demo 14-8