Please prepare the journal entries and provide explanations. Holiday received $56,000 in municipal bond interest during...

Please prepare the journal entries and provide explanations.

Holiday received $56,000 in municipal bond interest during 2017. Holiday also paid $17,400

in insurance premiums for a life insurance policy for the CEO on which Holiday is the

beneficiary. Holiday also paid $3,000 in insurance premiums on other key executives but

Holiday is not the beneficiary on these policies.

Solutions

Expert Solution

Journal entries:

Date	Accounts Titles	Debit $	Credit $
a	Cash	56000
	Interest Revenue		56000
	(being municipal bond interest received)

b	Insurance expenses	17400
	Cash		17400
	(being insurance premium for CEO life insu.
	and company is beneficiary)

c	Insurance expense receivable	3000
	Cash		3000
	(being insurance premium on executives like and
	the company not beneficiary)

ekkarill92 answered 1 year ago

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