purchased a P5,000,000 life insurance policy on its president, of which Charm is the beneficiary. Information regarding the policy for the year ended December 31, 2019 follows: Cash surrender value, January 1 - P435,000; Cash surrender value, December 31 - P540,000; Annual advance premium paid January 1 - P200,000. During 2019, dividends of P30,000 were applied to increase the cash surrender value of the policy. What amount should Charm report as life insuranc

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A: Cost per service year = Prior costs / Number of employees worked during every year = $6,000,000 /…

Q: JJJ Company insured the life of its president for P2,000,000. The entity being the beneficiary of an…

A: SOLUTION- Insurance expenses are incurred by the policyholder.

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A: The correct answer is Option (c).

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A: This is an income computation question, please refer to step two to see the answer.

Q: Gumamela Company has a  $5,000,000 life insurance policy on its CEO of which Gumamela is the…

A: Insurance expense is the expense which occurs when the policy is purchased or any premium or legal…

Q: How much must have been the cash surrender value of life insurance at Iris's December 31. 2020…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…

Q: On January 1,2016 , Coke Company insured the life of its president for P4,000,000, with an annual…

A: Given: - Cash surrender value at the end of 2019= 49,000 Cash surrender value at the end 2020=…

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A: The insurance taken here is the key insurance by Nakasiguro company for its president P, to avoid…

Q: Chain Co purchased 1M life insurance policy on its president, of which Chain is the beneficiary.…

A: Increase in cash surrender value should be treated as direct reduction in insurance premium of…

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A: Expenses means the amount spent on running the business where as income means the amount earned…

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A: B. - 4,874,000

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A: Insurance: It is the agreement between the insurance company which called insurer and person…

Q: What is the journal entry on Dec. 31, 2014 to recognized the cash surrender value and adjust the…

A: Journal:   It is the first step of recording financial transactions. It is used to prepare the…

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A: Pension plan is part of personal financial planning. After retirement, person need money to survive.…

Q: On January 1, 2015, Crane Company purchased a P4,000,000 ordinary life insurance policy on its…

A: Solution:   Life Insurance Expense for 2018   Annual Insurance premium paid on Jan1,2018…

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Q: Edible Chemicals Corporation owns a $4 million whole life insurance policy on the life of its CEO,…

A: Calculate the cash surrender value to be recorded.

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A: Life expense for the year = Amount of insurance premium paid

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A: Answer: correct answer is option C C. P 1,588,500; P 319,500

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Q: December 31, 2020. Cash surrender value of life insurance, December 31, 2020 -

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A: Cash surrender value to be recognized at the end of December 31, 2014 is P 80,000 On that date the…

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Q: ABC Company insured the life of one of its officers. Yearly premium amount to P 75,000. At the end…

A: Explanation: The cash surrender value refers to the amount of money a policyholder or an annuity…

Q: Garrulous Company insured the life of the president for P2,000,000, the entity being the beneficiary…

A: Solution A journal is a company's official book in which all business transaction are recorded in…

Q: . What is the journal entry on Dec. 31, 2014 to recognized the cash surrender value and adjust the…

A: Journal:   It is the first step of recording financial transactions. It is used to prepare the…

Q: Jelline Company insured the life of its president for P2,000,000, the entity being the beneficiary…

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Q: Edible Chemicals Corporation owns a $4 million whole life insurance policy on the life of its CEO,…

A:

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A: Cash surrender value :it is the total amount to be paid by the insurance company to the policy…

Q: In 2015, Charm Company purchased a P5,000,000 life insurance policy on its president, of which Charm…

A: Solution- Advance premium paid    200000 Add opening cash surrender value   435000     635000…

Q: On Jan. 1, 2010, ABC entered into an insurance contract covering the life of its founder. The…

A: Journal:   It is the first step of recording financial transactions. It is used to prepare the…

Q: JJ Company insured the life of its president for P2,000,000. The entity being the beneficiary of an…

A: Insurance expenses are incurred by the policyholder.

Q: On Jan. 1, 2010, ABC entered into an insurance contract covering the life of its founder. The…

A: The cash surrender value of a policy or annuity is the amount of money paid by an insurance company…

Q: On January 1,2020, ABC Company insured the life of its president for P 7,000,000, with an annual…

A: Formula: Change in cash surrender policy = Current year amount - previous year amount.

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Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.