(Answered) Below are two unrelated situations relating to life

Accounting

Below are two unrelated situations relating to life insurance.Prepare the appropriate journal entry for each situation.

Required:

1. Ford Corporation owns a whole life insurance policy on the life of its president. Ford Corporation is the beneficiary. The insurance premium is $25,000. The cash surrender value increased during the year from $2,500 to $4,600.

2. Petroleum Corporation received a $250,000 life insurance settlement when its CEO died. At that time, the cash surrender value was $16,000.

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