LaBelle Corporation owns a $6 million whole life insurance policy on the life of its CEO,naming LaBelle as beneficiary.The annual premiums are $95,000 and are payable at the beginning of each year.The cash surrender value of the policy was $56,000 at the beginning of 2016.
Required:
(1. )Prepare the appropriate 2016 journal entry to record insurance expense and the increase in the investment,assuming the cash surrender value of the policy increased according to the contract to $70,000.
(2. )The CEO died at the end of 2016.Prepare the appropriate journal entry.

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The Answer of LaBelle Corporation owns a $6 million whole life insurance policy on the life of its CEO,naming LaBelle as beneficiary.The annual premiums are $95,000 and are payable at the beginning of each year.The cash surrender value of the policy was $56,000 at the beginning of 2016.
Required:
(1. )Prepare the appropriate 2016 journal entry to record insurance expense and the increase in the investment,assuming the cash surrender value of the policy increased according to the contract to $70,000.
(2. )The CEO died at the end of 2016.Prepare the appropriate journal entry.

LaBelle Corporation Owns a $6 Million Whole Life Insurance Policy