Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

After the death of Lennie Pope, his will was read. It contained the following provisions: $120,000 in cash goes to decedents brother, Ned Pope. Residence

After the death of Lennie Pope, his will was read. It contained the following provisions:

  • $120,000 in cash goes to decedents 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.
  • $420,000 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 $ 37,000
Certificates of deposit 102,000
Dividends receivable 5,300
Life insurance policy 565,000
Residence and personal effects 585,000
Shares of Ford Motor Company 95,000
Shares of Xerox Corporation 102,000

(2) Collected life insurance policy.

(3) Collected dividends of $8,600.

(4) Discovered debts of $94,000.

(5) Conveyed title to the residence to Sue Pope along with the decedents personal effects.

(6) Discovered title to land valued at $38,000.

(7) Discovered additional debts of $60,000. Paid all of the debts totaling $154,000.

(8) Paid funeral expenses of $54,000.

(9) Conveyed cash of $120,000 to Ned Pope.

(10) Sold the shares of Ford for $115,500.

(11) Paid administrative expenses of $39,000.

(12) Made the appropriate payment to Harwood Pope.

b. Prepare a charge and discharge statement.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions