JJJ Company insured the life of its president for P2,000,000. The entity being the beneficiary of an ordinary life insurance policy. The annual premium is P80,000 and the policy is dated January 1, 2016. The cash surrender values are P15,000 on December 31, 2018 and P19,000 on December 31, 2019. The entity followed the calendar year as the fiscal period. The president died on October 1, 2019 and the policy is settled on December 31, 2019. What is the gain on life insurance settlement for 2019?

Q: uct: SF, customer utstanding c T879

A: Bank Reco Statement is  reconciliation of bank balance in our…

Q: during 2017, Mr. William Lerue withdraws $15,000 from his RRSP, using the provisions of the Home…

A: RRSP: RRSP stands for registered retirement saving plan under which the tax payer or spouse…

Q: On 01-4-2017, Kevin Limited issued 6000, 11% debentures of $100 each at Discount of 5%. All the…

A: Introduction: Journal entries are used to record financial transactions. You enter transaction…

Q: Required: 1. Prepare the entry for the preceding transaction 2. Based on the result of your audit,…

A: Bond sinking fund: Bonds sinking funds are the restricted funds that were set aside for the purpose…

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: On January 1, 2020, Scott’s employer gave him a City of Denver Bond and a City of Hong Kong (China)…

A: The total pay from an employer before taxes or other deductions is an individual's gross income,…

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: Required: How would the pest and termite protection premium be prorated? Note: Round intermediate…

A: In simple terms, if you use something for a shorter period than originally planned, you should only…

Q: Joe and Clara contribute property to form JC Partnership on January 1, 2019. Joe contributes land…

A: Note: It is assumed that there is no profit share ratio, net income is allocated based on the…

Q: Eleanor (single) requested an extension to file her 2021 return and comes into the office on October…

A: RMD = (IRA balance as of December 31 of the prior year) /(Distribution period based on IRS life…

Q: e insurance policy. The annual premium is P100,000 and the policy is dated January 1, 2021 urrender…

A: Insurance contracts for life insurance are the contracts which are obtained to secure from the…

Q: Gregorio Corp. purchased a P5,000,000 ordinary life insurance policy on its president. Gregorio is…

A: Formula: Life Insurance Expenses  = Beginning Cash surrender value + Annual advance premium paid Jan…

Q: The EPBO for Branch Industries at the end of 2021 was determined by the actuary to be $20,000 as it…

A: APBO (Accumulated Post-retirement Benefit Obligation) is the proportion of EPBO (Expected…

Q: Ayayai Corporation, a publicly-traded company, agreed to loan money to another company. On July 1,…

A: The concept in this question is the present value of a promissory note, which refers to the current…

Q: On January 1, 2021, Shay Company issues $350,000 of 10%, 15-year bonds. The bonds sell for $342,125.…

A: Bond :— It is one of the source of capital that pays fixed periodic interest and principal amount at…

Q: How to adjust net income to cashflow.

A: In cashflow there are 2 methods for calculating operating cash flow, they are: a. Direct Method b.…

Q: On January 1, 2018, the Apex Company exchanged some shares of common stock it had been holding as…

A: Effective annual interest rate: The effective annual interest rate is said to be the real return on…

Q: Generally, if the owner of an IRA dies after December 31, 2019, and before beginning required…

A: As per the SECURE ACT, 2019 if an IRA owner dies after December 31, 2019, and whether required…

Q: Owner Pedro invested an initial capital of amounting P50,000 in order to put up his janitorial…

A: Capital means the amount invested by the owner in its business. Net income increases capital…

Q: A corporation borrowed money through an 9-month, 8% note for $120,000 on September 1, 2020. The note…

A: Formula: Interest amount = Notes amount x Interest rate x Time period

Q: ) Prepare an amortization table for 2022 and 2023 (up to June 30, 2023): Prepare an amortization…

A: A bond is a borrowing security issued by a company to raise funds from the market by making an…

Q: Eifel, Inc. is an S corporation and has three employees. Eifel has established a Simple IRA plan for…

A: Extra Points to keep in mind:Employees can choose to contribute more than the minimum or maximum…

Q: In 2022, Wilbur had the following transactions: Alimony paid (settled in 2017) Commissions earned as…

A: In the American tax system, the adjusted gross income (AGI) is a crucial indicator. It represents a…

Q: On December 25, 2019, Ms. Smith gives Charity Z 1,000 shares of stock that she bought originally for…

A: In the given question, Charity Z has received shares as donation in the course of its business.…

Q: The EPBO for Branch Industries at the end of 2018 was determined by the actuary to be $20,000 as it…

A: Accumulated Post-retirement Benefit Obligation (ABPO): It is that part of Expected Post-retirement…

Q: Hans invests 1,000 on January 01 2021 in Fund A that credits interest at an effective annual rate of…

A: Amount Invested is 1,000 Time period is 12 years Fund-A Interest rate for first 7 years us 8%…

Q: ndy company invests $300,000 in equity securities on November 30, 2019, and classifies them as…

A: A company's business operations and financial performance are described in written records is called…

Q: Mac sold a tract of land with a carrying amount of P3,000,000 to Poon July 1, 2018. 1,200,000 was…

A: Non Current Assets :— It is the asset that held for more than one year. It is hold for long term. It…

Q: Ont/2/ 2021, the County of Santa Teresa issued a 20-year-life serial bond with a principal of…

A: A budget helps the government to retire its borrowed funds.

Q: On January 1, 2019, Her Highness Hortense Co. purchased a patent for $1,904,000. The patent is being…

A: An intangible asset seems to be one that does not have a physical form. Intangible assets include…

Q: verdale and Jim Kulak set up a new limited liability company on May 16, 2020. Ted contributes a…

A: The practice of capturing commercial transactions for first time in the books of accounts is known…

Q: Shuai is 43 years old and has been asked to accept early retirement from his company. The company…

A: Alternative 1 :Immediate cash payment paid = $231,000Alternative 2:Number of years = 20 yearsAnnuity…

Q: a. Compute Al's gross income for 2023 using the cash basis of accounting. Feedback Check My Work b.…

A: Cash-based accounting recognizes income and expenses when actual cash transactions occur. Income is…

Q: For calendar year 2019, Stuart and Pamela Gibson file a jointreturn reflecting AGI of $350,000.…

A: An itemized deduction seems to be an expense that may be deducted from the adjusted gross income…

Q: Planning Al is a medical doctor who conducts his practice as a sole proprietor. During 2023, he…

A: Detailed explanation:a. cash basis : cash received in 2023$ 280,000advanced payment received from…

Q: After working for 30 years and due to old age (55 years), Rufino retired from his employment on…

A: Individuals or HUFs who had voluntarily retired before attaining 60 years of age will incur the…

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: As of May 31, 2020, Mr. Michael Kors has a capital balance of P 235,000. During the month of June,…

A: The ending capital of owner is calculated as adjusted capital after drawings and additional…

Q: Riley Company promises to pay Janet Anderson or her estate $150,000 per year for the next 10 years,…

A: Deffered Compensation Liabilities :— it is an arrangement on which a portion of individual income…

Q: Eddy Co. is indebted to Cole under a P400,000, 12%, three-year note dated December 31, 2019. Because…

A: Lets understand the basics. When there is financial difficulties arise to borrower and borrower is…

Q: O

A: Mortgage is an agreement between two parties to lend a loan on the basis of a certain property kept…

Q: esto Corporation has authorized to issue$4,500,000 of its 9%, 5-year bonds On January 1, 2019, when…

A: 1) Journal Entry to record issue of Bonds. Date Particulars Debit Credit Jan 1 - 2019 Cash…

Q: The Standard Corporation paid wages of $140,000 to it chief accountant in 2020. Determine the amount…

A: Given, Wages = $ 140000   To compute Social security tax & Medicare tax:

Q: Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2021, at a…

A: A recognized gain refers to the amount raised from the sale of investment or assets used in business…