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: 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: 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: 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: ola, age 64 began receiving $1,200 as a monthly annuity in 2019 when her husband died.  She received…

A: The question is based on the concept of financial accounting.

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: 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: 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. Using the Asset Method, give the Journal Entry on September 1, 2020 and the Adjusting Journal…

A: The prepaid expenses are the expenses that are paid in advance by the business. The prepaid expenses…

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: Concord Company establishes a stock-appreciation rights program that entitles its new president Ben…

A: Compensation expense refers to that expense which is paid in the form of wages and salaries. In also…

Q: Bigham Corporation, an accrual basis calendar year taxpayer, sells its servicesunder 12-month and…

A: Accrual accounting seems to be a form of accounting in which income and costs are reported whenever…

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: On January 1, 2019, Charles Jamison borrows $40,000 from his father to open a business. Charles is…

A: The objective of the question is to calculate the annual payments Charles needs to make to his…

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: 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: Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12- and…

A: The accrual concept states that the revenues are recognized when earned and the expense is…

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…

Q: ond's yield to maturity, amortization of the $20,000 discount was $1,512 in 2020, $1,480 in 2021,…

A: Bonds  is a type of security which the companies issue to raise money at an interest rate.…

Q: 023, and closing was set for June 25, 2023. Rosie had prepaid her three-yea est and termite…

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

Q: During 2019, Rachael Parkins, president of Mathieson Company, was paid a semimonthly salary of…

A: Calculate the amount of FICA taxes that should be withheld from Person R. Particulars OASDI HI…

Q: In 2019, Mrs. Ulm paid $80,000 for a corporate bond with a $100,000 stated redemption value. Based…

A: Step 1: Understanding bond purchase and discount amortizationWhen Mrs. Ulm bought the bond for…

Q: $376.00

A: Please fallow the answer below In the above given option no answer is matches ...please see the…

Q: On January 1, 2020, a company issued P10,000,000 bonds that will mature in 5 years. The management…

A: In the given question, semi-annual deposits are made for next 5 years (first deposit being 6 months…