On January 1, 20x1, ABC Co insured the life of one of its key management personnel for P5,000,000. ABC Co is the beneficiary. The insurance policy requires annual payments of P50,000 at the start of each year. Information on cash surrender value is shown below: Policy year Cash Surrender Value December 31, 20x1 - December 31, 20x2 - December 31, 20x3 90,000 December 31, 20x4 110,000 December 31, 20x5 130,000 Additional information: -ABC CO received P3,000 cash dividend from the life insurance on September , 20x4. -The key employee died on Kuly 1, 20x5. Requirement: Provide journal entries on the following dates a. January 1, 20x1 to January 1, 20x3 premium payments b. December 31, 20x3 cash surrender value c. January 1, 20x4 premium payment d. September 1, 20x4 dividends e. December 31, 20x4 cash surrender value f. January 1, 20x5 premium payment g. July 1, 20x5 assume the policy is also collected on this date and unexpired premium is reimbursed.
On January 1, 20x1, ABC Co insured the life of one of its key management personnel for P5,000,000. ABC Co is the beneficiary. The insurance policy requires annual payments of P50,000 at the start of each year. Information on cash surrender value is shown below:
Policy year Cash Surrender Value
December 31, 20x1 -
December 31, 20x2 -
December 31, 20x3 90,000
December 31, 20x4 110,000
December 31, 20x5 130,000
Additional information:
-ABC CO received P3,000 cash dividend from the life insurance on September , 20x4.
-The key employee died on Kuly 1, 20x5.
Requirement: Provide
a. January 1, 20x1 to January 1, 20x3 premium payments
b. December 31, 20x3 cash surrender value
c. January 1, 20x4 premium payment
d. September 1, 20x4 dividends
e. December 31, 20x4 cash surrender value
f. January 1, 20x5 premium payment
g. July 1, 20x5 assume the policy is also collected on this date and unexpired premium is reimbursed.
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