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FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What amount should be reported as life insurance expense fet Chain Company has a P5,000,000 life insurance policy on the president, of which Chain Company is the beneficiary. The entity provided the following information regarding the policy for the year ended December 31, 2020: 435,000 540,000 200,000 During the current year, dividends of P30,000 were applied Cash surrender value, January 1 Cash surrender value, December 31 Annual advance premium paid January 1 increase the cash surrender value of the policy. What amount should be reported ás life insurance expense 2020?
Transcribed Image Text:What amount should be reported as life insurance expense fet Chain Company has a P5,000,000 life insurance policy on the president, of which Chain Company is the beneficiary. The entity provided the following information regarding the policy for the year ended December 31, 2020: 435,000 540,000 200,000 During the current year, dividends of P30,000 were applied Cash surrender value, January 1 Cash surrender value, December 31 Annual advance premium paid January 1 increase the cash surrender value of the policy. What amount should be reported ás life insurance expense 2020?
on the president. The policy year and accounting year coincide. Marital Company has a P5,000,000 ordinary life insurance policy The entity provided the following data for the year ended December 31, 2020: Cash surrender value, January 1 Cash surrender value, December 31 Annual advance premium paid-January 1 Dividend received -July 1 245,000 270,000 100,000 15,000 The entity is the beneficiary under the life insurance polie The insured died on January 2, 2021, after the payment of annual premium of P100,000 on January 1, 2021. What is the life insurance expense for 2020?
Transcribed Image Text:on the president. The policy year and accounting year coincide. Marital Company has a P5,000,000 ordinary life insurance policy The entity provided the following data for the year ended December 31, 2020: Cash surrender value, January 1 Cash surrender value, December 31 Annual advance premium paid-January 1 Dividend received -July 1 245,000 270,000 100,000 15,000 The entity is the beneficiary under the life insurance polie The insured died on January 2, 2021, after the payment of annual premium of P100,000 on January 1, 2021. What is the life insurance expense for 2020?
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