After the death of Lennie Pope, his will was read. It contained the following provisions: $125,000 in
Question:
After the death of Lennie Pope, his will was read. It contained the following provisions:
- $125,000 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.
- $330,000 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 | $ | 17,000 | |
Certificates of deposit | 82,000 | ||
Dividends receivable | 3,300 | ||
Life insurance policy | 465,000 | ||
Residence and personal effects | 485,000 | ||
Shares of Ford Motor Company | 75,000 | ||
Shares of Xerox Corporation | 82,000 | ||
(2) Collected life insurance policy.
(3) Collected dividends of $4,600.
(4) Discovered debts of $74,000.
(5) Conveyed title to the residence to Sue Pope along with the decedent’s personal effects.
(6) Discovered title to land valued at $18,000.
(7) Discovered additional debts of $40,000. Paid all of the debts totaling $114,000.
(8) Paid funeral expenses of $34,000.
(9) Conveyed cash of $125,000 to Ned Pope.
(10) Sold the shares of Ford for $85,500.
(11) Paid administrative expenses of $19,000.
(12) Made the appropriate payment to Harwood Pope.
b. Prepare a charge and discharge statement.
College Accounting Chapters 1-30
ISBN: 978-0077862398
14th edition
Authors: John Price, M. David Haddock, Michael Farina