(Solution) - The Westford Corporation purchases life insurance policies on it -(2025 Original AI-Free Solution)

Paper Details

The Westford Corporation purchases life insurance policies on its officers, and these policies all carry a cash surrender value clause. At the beginning of 2007, Westford paid $13,300 in life insurance premiums for one year. During 2007 the cash surrender value of the policies increased from $98,450 to $103,900. At the beginning of 2008 the corporation?s vice president lost his life in an automobile accident. The policy carried on this officer paid $50,000, and the cash surrender value of the policy was $6,480.

Required
Prepare journal entries to record the preceding information on the Westford Corporation?s books.