What amount of life insurance expense should company report

Assignment Help Financial Accounting
Reference no: EM132982562

Question - On January 2, 2016, a company purchased a P4,000,000 ordinary life insurance policy on its president.

Additional data for the year 2019 are:

Cash surrender value, January 1 P200,000;

Cash surrender value December 31, P220,000;

Annual insurance premium paid on January 1, 2019, P80,000;

Dividend received on August 1, P10,000.

The company is the beneficiary under the life insurance policy. What amount of Life Insurance Expense should the company report in its December 31, 2019 profit or loss?

Reference no: EM132982562

Questions Cloud

What effect would the purchase of the new machine : What effect would the purchase of the new machine have on mueller's break- even point in units and if the company expects a profit of $20,000
What position in the futures contracts should they take : A company has a portfolio of stocks worth £10 million. What position in the futures contracts should they take and how many contracts are needed
What was kass material price variance for the quarter : What was Kass' material price variance for the quarter assuming this is calculated based on the purchased amount? Show all calculations
Analyse tesco method of developing its employees : Analyse Tesco's method of developing its employees. Consider the strengths and weaknesses of such a programme
What amount of life insurance expense should company report : The company is the beneficiary under the life insurance policy. What amount of Life Insurance Expense should the company report in its December 31, 2019 profit
Explain different types of user testing : Explain at least two different types of user testing, their importance, and provide an example.
Discuss the advantages of going rate approach in ihrm : Discuss the advantages of Going Rate Approach in IHRM.
Determine the increase in share premium issuance : Determine the increase in share premium issuance if 40% of the share warrants were exercised on December 31, 2021
Define the types of benefits required by law : Define the types of benefits required by law. How can organizations minimize the cost of these benefits while complying with the relevant laws?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd