E 23-2 Prepare journal entries for an estate You serve as the executor for the estate of

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E 23-2 Prepare journal entries for an estate You serve as the executor for the estate of Maribeth Rainy. The following transactions occur during July 2015:

a The Rainy estate included a certificate of deposit in the amount of $600,000. On the date of death, there was $11,600 of accrued but unpaid interest. On July 15, you received a check in the amount of $15,000, representing the normal semiannual interest payment.

b Included in the specific devises of Maribeth’s will was a bequest to the local symphony orchestra in the amount of $150,000. You decide that estate assets will be more than adequate to meet all obligations of the estate and to pay all specific devises, and you issue a check for $150,000 to the orchestra on July 18.

c You pay a probate court fee of $2,800 on July 24.

d On July 20, you pay funeral expenses in the amount of $12,800.

e On July 28, you receive a bill from the local hospital for costs not covered by Maribeth’s insurance in the amount of $44,000. The liability was unknown and not included in your initial estate inventory.

REQuIRED: Prepare journal entries for the listed transactions. You can ignore estate and income taxes.

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Advanced Accounting

ISBN: 9781292214597

13th Global Edition

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

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