Garrulous Company insured the life of the president for P2,000,000, the entity being the beneficiary of an ordinary life policy. The annual premium is P60,000. The policy was dated January 1, 2020 and carried the following cash surrender value: End of policy year Cash surrender value 2020 2021 2022 2023 2024 60,000 84,000 116,000 00000 The entity followed the calendar year as the accounting period. The president died on June 30, 2024 and the policy was collected on July 31, 2024. Required: Prepare journal entries from January 1, 2020 to July 31, 2024.

Garrulous Company insured the life of the president for P2,000,000, the entity being the beneficiary of an ordinary life policy. The annual premium is P60,000. The policy was dated January 1, 2020 and carried the following cash surrender value: End of policy year Cash surrender value 2020 2021 2022 2023 2024 60,000 84,000 116,000 00000 The entity followed the calendar year as the accounting period. The president died on June 30, 2024 and the policy was collected on July 31, 2024. Required: Prepare journal entries from January 1, 2020 to July 31, 2024.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: On May 31, 2019, John Deere sold a tractor to Dirtco in exchange for a 2-year, $440,000…

A: If a note that does not pay interest is classified as a bond, then the issuer is offering the bond…

Q: Prepare journal entries for Cullumber for 2025-related revenue for this franchise arrangement.…

A: It has been given that the down payment is non-refundable and there are no future courses of action…

Q: Papa, Inc. has a life insurance policy with its president as insured. Papa is the beneficiary of…

A: The correct answer is Option (c).

Q: On July 1, 2019, John Deere signed a $100,000, one year, 6% note payable. The principal and interest…

A: The accrual basis concept is used to record the revenues and expenses in the income statement. The…

Q: On January 1, 2025, Barbara Brown signed an agreement, covering 5 years, to operate as a franchisee…

A: Here's a review to ensure the accuracy of the journal entries based on the given problem. Here's a…

Q: Dr. Smith started Biotech Inc. (BTE). on October 1, 2020. On October 1, 2020, BTE issued 100 common…

A: A stock dividend is the distribution of a dividend paid in the manner of equity instead of cash and…

Q: TRANK CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from…

A: A cash flow statement is an important tool used to manage finances by tracking the cash flow for an…

Q: Prepare the journal entry to record this transaction on January 2, 2025, and on December 31, 2025…

A: The warranty expense is the expense which is used by the company and the expense which is associated…

Q: On January 1, 2025, Maria Wilson signed an agreement, covering 5 years, to operate as a franchisee…

A: Franchising:It is a strategy for selling goods and services that relies on a partnership between the…

Q: ired: Complete an amortization table for this installment note. Prepare the journal entries in which…

A: Notes payable is an amount that is issued by a company in exchange of an amount borrowed. It is…

Q: On January 1, 2025, Laura Allen signed an agreement, covering 5 years, to operate as a franchisee of…

A: A method of selling products and services that is based on a relationship between the local operator…

Q: ABC Company has a P15,000,000, two-year note payable to DEF that matures October 31, 2021. ABC's…

A: Solution Concept The current portion of the long term debt is classified as the current liabilities…

Q: On December 31, 2025, Sheridan Company sells production equipment to Golden Inc. for $82,500,…

A: A warranty expense is a cost that a business expects to incur as a result of providing its customers…

Q: On January 1, 2025, Sandra Clark signed an agreement, covering 5 years, to operate as a franchisee…

A: A method of selling products and services that is based on a relationship between the local operator…

Q: In 2021, Mrs. Ulm paid $80,000 for a corporate bon amortization of the $20,000 discount was $1,512…

A: Financial decision-making, investment planning, and general fiscal responsibility all depend on…

Q: On January 1, 2025, Barbara Brown signed an agreement, covering 5 years, to operate as a franchisee…

A: Step 1:a.Before proceeding with the journal entries in the books of franchisor, we need to calculate…

Q: On December 31, 2022, Delta Company sells equipment to Tchefunkte Inc. for $125,000. Delta includes…

A: Warranty expense is an accounting estimate of the cost a company expects to incur to fulfill its…

Question

Garrulous Company insured the life of the president for
P2,000,000, the entity being the beneficiary of an ordinary
life policy. The annual premium is P60,000.
The policy was dated January 1, 2020 and carried the
following cash surrender value:
End of policy year
Cash surrender value
2020
2021
2022
2023
2024
60,000
84,000
116,000
2000000
The entity followed the calendar year as the accounting
period. The president died on June 30, 2024 and the policy
was collected on July 31, 2024.
Required:
Prepare journal entries from January 1, 2020 to July 31, 2024.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

5. Soriano's Corporation's liability account balances at June 30, 2020, included a 10% notes payable in the amount of P3,600,000. The note is dated October 1, 2019, and is payable in three equal annual payments of P1,200,000 plus interest. The first interest and principal payment was made on October 1, 2020. In its June 30, 2021 financial statement, what amount should be recorded as accrue interest for this note?
On April 1, 2019, Flamengo Co. signed a one-year, 8% interest-bearing note payable for $50,000. Assuming that Flamengo Co. maintains its books on a calendar year basis, how much interest expense should be reported in the 2020 income statement? a.$1,000. B.$2,000. C.$4,000. D.$3,000. Which of the alternatives results from the accrual of interest: A.Increase in liabilities and decrease in stockholders' equity. B.Increase in assets and stockholders' equity. C.Increase in assets and liabilities. D.Increase in liabilities and increase in stockholders' equity. Unfortunately, Flamengo Co. is involved in a lawsuit. When would the lawsuit be recorded as a liability on the balance sheet? A.When the loss is probable and the amount can be reasonably estimated. B.When the loss probability is reasonably possible and the amount can be reasonably estimated. C.When the loss is probable regardless of whether the loss can be reasonably estimated. D.When the loss…
Edward purchased a new piece of equipment to be used in its new facility. The $445,000 piece of equipment was purchased with a $66,750 down payment and with cash received through the issuance of a $378,250, 9%, 5-year mortgage payable issued on January 1, 2022. The terms provide for annual installment payments of $97,245 on December 31. 1. Prepare an installment payments schedule for the first five payments of the notes payable 2. Prepare the journal entry related to the notes payable for December 31, 2022. 3. Show the balance sheet presentation for this obligation for December 31, 2022. (Hint: Be sure to distinguish between the current and long-term portions of the note.)
On December 31, 2023, Sablok Company sells production equipment to Tang Inc. for $50,000. Sablok includes a one-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2023. Sablok estimates the prices to be $48,800 for the equipment and $1,200 for the cost of warranty. Instructions Are the sale of the equipment and the warranty separate performance obligations within the contract? Explain. Prepare a single compound journal entry to record this transaction on December 31, 2024. Ignore any related cost of goods sold entry. Repeat the requirements for part (b), assuming that, in addition to the assurance warranty, Sablok sold an extended warranty (service-type warranty) for an additional two years (2024–2025) for $800. (Hint: Use unearned revenue).
On, January 25, 2025 Samantha corporation purchases investment bonds in Tyler corporation for $20,000 cash. The bonds paid 10% semiannually, and had accrued interest for $250 at the time of the purchase. Record the transaction.
tekabhai
Need help questions 2 and 3.