George Wilson dies on March 1, 2011, leaving a valid will. The will reads as follows:
I leave my home, furnishings, remaining bank account balances and personal possessions to my wife Helen. I leave my automobile to my nephew, Dennis. I leave my stock investment accounts to my niece, Denise. I leave income on my estate to be divided equally between Dennis and Denise. Estate expenses are to be paid from principal, not from estate income. All remaining property is to be placed in a trust for my four children. I name my nephew, Dennis, as executor of my estate.
Dennis prepares an estate inventory for all assets discovered and files the appropriate notice to potential creditors on March 15:
George Wilson, Testator
Inventory of Estate Assets
As of March 1, 2011
Assets...................Fair Value
Cash—checking.............. $ 16,500
Cash—savings................ 50,000
Dividends receivable on stocks........ 400
Interest receivable on bonds......... 2,400
Life insurance—payable to the estate...... 500,000
Personal residence............... 325,000
Household furnishings and personal effects... 76,000
2000 Thunderbird Convertible........ 21,000
Investments in stocks............. 25,000
Investments in bonds............. 200,000
$1,216,300
The following transactions occurred during March and April:
March 25 Dennis pays funeral expenses of $2,800.
March 30 Dennis receives a check from the life insurance company for $500,000.
April 9 Dennis discovers title to a small parcel of lakefront property in George’s safe deposit box. The title indicates that George purchased the land for $10,000.
April 15 A check for $3,000 in bond interest is received.
April 19 Dennis receives an appraiser’s report on the lakefront property, valuing it for $28,000.
April 28 Dennis pays $13,250 to settle all liabilities of the estate, including property taxes and George’s medical bills.
April 29 A check for $500 in stock dividends is received.
April 30 Dennis makes all remaining payments and property transfers and closes the estate.
REQUIRED
Prepare all journal entries required to account for the estate of George Wilson. You may ignore taxes.