After the death of Lennie Pope, his will was read. It contained the following provisions: $135,000 in
Question:
After the death of Lennie Pope, his will was read. It contained the following provisions:
$135,000 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.
$350,000 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 | 84,000 | ||
| Dividends receivable | 3,500 | ||
| Life insurance policy | 475,000 | ||
| Residence and personal effects | 497,000 | ||
| Shares of Ford Motor Company | 77,000 | ||
| Shares of Xerox Corporation | 84,000 | ||
(2) Collected life insurance policy.
(3) Collected dividends of $5,400.
(4) Discovered debts of $78,000.
(5) Conveyed title to the residence to Sue Pope along with the decedent’s personal effects.
(6) Discovered title to land valued at $22,000.
(7) Discovered additional debts of $44,000. Paid all of the debts totaling $122,000.
(8) Paid funeral expenses of $38,000.
(9) Conveyed cash of $145,000 to Ned Pope.
(10) Sold the shares of Ford for $91,500.
(11) Paid administrative expenses of $23,000.
(12) Made the appropriate payment to Harwood Pope.
b. Prepare a charge and discharge statement.
Expert Answer:
a Journal entries for the transactions 1 Discovering the following assets at fair value Cash Dr 19000 Certificates of deposit Dr 84000 Dividends recei... View the full answer
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
