Question

After the death of Lennie Pope, his will was read. It contained the following provisions:
• $110,000 in cash goes to decedent’s brother, Ned Pope.
• Residence and other personal property go to his sister, Sue Pope.
• Proceeds from the sale of Ford stock go to uncle, Harwood Pope.
• $300,000 goes into a charitable remainder trust.
• All other estate assets are to be liquidated with the cash going to Victoria Jones.
a. Prepare journal entries for the following transactions that subsequently occur:
(1) Discovered the following assets (at fair value):
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,000
Certificates of deposit . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Dividends receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
Life insurance policy . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000
Residence and personal effects . . . . . . . . . . . . . . . . . . 470,000
Shares of Ford Motor Company . . . . . . . . . . . . . . . . . . 72,000
Shares of Xerox Corporation . . . . . . . . . . . . . . . . . . . . . 97,000
(2) Collected life insurance policy.
(3) Collected dividends of $4,000.
(4) Discovered debts of $71,000.
(5) Conveyed title to the residence to Sue Pope along with the decedent’s personal effects.
(6) Discovered title to land valued at $15,000.
(7) Discovered additional debts of $37,000. Paid all of the debts totaling $108,000.
(8) Paid funeral expenses of $31,000.
(9) Conveyed cash of $110,000 to Ned Pope.
(10) Sold the shares of Ford for $81,000.
(11) Paid administrative expenses of $16,000.
(12) Made the appropriate payment to Harwood Pope.
b. Prepare a charge and discharge statement.



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  • CreatedOctober 04, 2014
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