Question

Jerry Tasch’s will has the following provisions:
• $150,000 in cash goes to Thomas Thorne.
• All shares of Coca-Cola go to Cindy Phillips.
• Residence goes to Kevin Simmons.
• All other estate assets are to be liquidated with the resulting cash going to the First Church of Freedom, Missouri.
Prepare journal entries for the following transactions:
a. Discovered the following assets (at fair value):
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 80,000
Interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000
Life insurance policy . . . . . . . . . . . . . . . . . . . . . . . . . 300,000
Residence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
Shares of Coca-Cola Company . . . . . . . . . . . . . . . . . . 50,000
Shares of Polaroid Corporation . . . . . . . . . . . . . . . . . .110,000
Shares of Ford . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .140,000
b. Collected interest of $7,000.
c. Paid funeral expenses of $20,000.
d. Discovered debts of $40,000.
e. Located an additional savings account of $12,000.
f. Conveyed title to the residence to Kevin Simmons.
g. Collected life insurance policy.
h. Discovered additional debts of $60,000. Paid debts totaling $100,000.
i. Conveyed cash of $150,000 to appropriate beneficiary.
j. Sold the shares of Polaroid for $112,000.
k. Paid administrative expenses of $10,000.



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  • CreatedOctober 04, 2014
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