You serve as the executor for the estate of Virginia Troy. Virginia's will provides that all remaining

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You serve as the executor for the estate of Virginia Troy. Virginia's will provides that all remaining assets other than specific items in the will pass to her longtime friend Melanie Matthews. The following transactions occur during October and November 2013:
a. The Troy estate included 100,000 shares of common stock of the Board of Water & Light, with a fair value of $62 per share. On the date of death, there were no outstanding dividends receivable. On October 15, you note that a dividend of $3 per share has been declared, payable on October 25.
b. Included in the specific devises of Virginia's will was a bequest to the Philadelphia Art Museum in the amount of $150,000.
c. You pay a probate court fee of $3,800 on October 24.
d. On October 29, you pay funeral expenses in the amount of $11,600.
e. On October 28, you receive and pay a bill from the local hospital for costs not covered by Virginia's insurance in the amount of $37,000. The liability was unknown and not included in your initial estate inventory.
f. On October 29, you receive a dividend check from the Board of Water & Light in the amount of $300,000.
REQUIRED:
Prepare journal entries for the listed transactions. You may ignore estate and income taxes.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Advanced Accounting

ISBN: 978-0133451863

12th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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