Question
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.
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