The executor of Rose Shield's estate listed the following properties (at fair value):
Cash ................. $300,000
Life insurance receivable ......... 200,000
Investments in stocks and bonds ..... 100,000
Rental property ........... 90,000
Personal property .......... 130,000
a. Prepare journal entries to record the property held by Ms. Shield's estate and then each of the following transactions that occur in the months following the decedent's death:
1. Claims of $80,000 are made against the estate for various debts incurred before the decedent's death.
2. Interest of $12,000 is received from bonds held by the estate. Of this amount, $5,000 had been earned prior to death.
3. Ordinary repairs costing $6,000 are made to the rental property.
4. All debts ($80,000) are paid.
5. Stocks recorded in the estate at $16,000 are sold for $19,000 cash.
6. Rental income of $14,000 is collected. Of this amount, $2,000 had been earned prior to the decedent's death.
7. Cash of $6,000 is distributed to Jim Arness, an income beneficiary.
8. The proceeds from the life insurance policy are collected and the money is immediately distributed to Amanda Blake as specified in the decedent's will.
9. Funeral expenses of $10,000 are paid.
b. Prepare in proper form a charge and discharge statement.

  • CreatedAugust 26, 2013
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