18. Hormonal Company has P1,000.000 ordinary life insurance policy on the president. The policy year and accounting year coincide. The entity provides the following data for the year ended December 31, 2020: Cash surrender value, January 1 Cash surrender value, December 31 Annual sdvance premium paid-lanuary 1 Dividend received-April 1 245,000 290,000 150,000 25.000 The entity is the beneficiary under the life insurance policy. The insured died on January 2, 2020 after payment of annual premium of P150,000 on January 1, 2021. The settlement of insurance policy is received on February 28. 2021 What is the life insurance expense on December 31, 2020? A. 85,000 80,000 150,000 125,000 Computation: Premium paid- January Less: Dividend received B. С. D. 150,000 25,000 Increase in cash surrender value (290,000 - 245,000) 20.000 80,000 45.000 Life insurance expense 19. Refer to the information in Question No. 18. What is the gain on life insurance settlement recorded on February 28, 2021? 1.000,000 560,000 850,000 700,000 A. B. C. D.
18. Hormonal Company has P1,000.000 ordinary life insurance policy on the president. The policy year and accounting year coincide. The entity provides the following data for the year ended December 31, 2020: Cash surrender value, January 1 Cash surrender value, December 31 Annual sdvance premium paid-lanuary 1 Dividend received-April 1 245,000 290,000 150,000 25.000 The entity is the beneficiary under the life insurance policy. The insured died on January 2, 2020 after payment of annual premium of P150,000 on January 1, 2021. The settlement of insurance policy is received on February 28. 2021 What is the life insurance expense on December 31, 2020? A. 85,000 80,000 150,000 125,000 Computation: Premium paid- January Less: Dividend received B. С. D. 150,000 25,000 Increase in cash surrender value (290,000 - 245,000) 20.000 80,000 45.000 Life insurance expense 19. Refer to the information in Question No. 18. What is the gain on life insurance settlement recorded on February 28, 2021? 1.000,000 560,000 850,000 700,000 A. B. C. D.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Pls. answer no. 19, 10 & 11.
Pls answer all the questions I will give you the best rate you deserve. Thank you!
![18.
Hormonal Company has P1,000,000 ordinary life insurance policy on the president. The
policy year and accounting year coincide. The entity provides the following data for the year ended
December 31, 2020:
Cash surrender value, January 1
Cash surrender value, December 31
Annual advance premium paid-lanuary 1
Dividend received-April 1
245,000
290,000
150,000
25.000
The entity is the beneficiary under the life insurance policy. The insured died on January
2. 2020 after payment of annual premium of P150,000 on January 1, 2021. The settlement
of insurance policy is received on February 28, 2021
What is the life insurance expense on December 31, 2020?
A.
85,000
80,000
150,000
125,000
Computation:
Premium paid- January
В.
С.
D.
150,000
Less: Dividend received
25,000
Increase in cash surrender value (290,000 – 245,000)
Life insurance expense
45,000
20.000
80,000
19.
Refer to the information in Question No. 18. What is the gain on life insurance settlement
recorded on February 28, 2021?
1,000,000
560,000
850,000
А.
В.
C.
D.
700,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff99863fc-23a5-422a-8fbe-b16090a243e8%2Fd92b64c8-0328-444e-950c-d3d393797c45%2Fj9rg9yj_processed.png&w=3840&q=75)
Transcribed Image Text:18.
Hormonal Company has P1,000,000 ordinary life insurance policy on the president. The
policy year and accounting year coincide. The entity provides the following data for the year ended
December 31, 2020:
Cash surrender value, January 1
Cash surrender value, December 31
Annual advance premium paid-lanuary 1
Dividend received-April 1
245,000
290,000
150,000
25.000
The entity is the beneficiary under the life insurance policy. The insured died on January
2. 2020 after payment of annual premium of P150,000 on January 1, 2021. The settlement
of insurance policy is received on February 28, 2021
What is the life insurance expense on December 31, 2020?
A.
85,000
80,000
150,000
125,000
Computation:
Premium paid- January
В.
С.
D.
150,000
Less: Dividend received
25,000
Increase in cash surrender value (290,000 – 245,000)
Life insurance expense
45,000
20.000
80,000
19.
Refer to the information in Question No. 18. What is the gain on life insurance settlement
recorded on February 28, 2021?
1,000,000
560,000
850,000
А.
В.
C.
D.
700,000
![10.
White Wolf Company purchased the following investments during 2019:
Cost
P 900,000
1000.000
Classification
Security A
Security B
Trading
Trading
Market Value Dec. 31, 2019
P1,000,000
1.600,000
On July 31, 2020, the entity sold half of the shares of Security B for P850,000. On
December 31, 2020, the shares of Security A and Security B had a market value of
P600,000 and P900,000, respectively. No other activity occurred during 2020 in relation
to the trading security portfolio.
What is the net gain or (loss) to be presented in the Income Statement at year-end of
2020?
A.
250,000
(250,000)
300,000
(300,000
В.
C.
D.
11.
Refer to the information in question No. 10. What is the balance of Trading Securities to
be presented in the Statement of Financial Position at year-end of 2020?
A.
В.
C.
D.
1.500,000
1.900,000
1,800,000
1,300,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff99863fc-23a5-422a-8fbe-b16090a243e8%2Fd92b64c8-0328-444e-950c-d3d393797c45%2Fayic8h_processed.png&w=3840&q=75)
Transcribed Image Text:10.
White Wolf Company purchased the following investments during 2019:
Cost
P 900,000
1000.000
Classification
Security A
Security B
Trading
Trading
Market Value Dec. 31, 2019
P1,000,000
1.600,000
On July 31, 2020, the entity sold half of the shares of Security B for P850,000. On
December 31, 2020, the shares of Security A and Security B had a market value of
P600,000 and P900,000, respectively. No other activity occurred during 2020 in relation
to the trading security portfolio.
What is the net gain or (loss) to be presented in the Income Statement at year-end of
2020?
A.
250,000
(250,000)
300,000
(300,000
В.
C.
D.
11.
Refer to the information in question No. 10. What is the balance of Trading Securities to
be presented in the Statement of Financial Position at year-end of 2020?
A.
В.
C.
D.
1.500,000
1.900,000
1,800,000
1,300,000
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