Question
After the death of Lennie Pope, his will was read. It contained the following provisions: $185,000 in cash goes to decedents brother, Ned Pope. Residence
After the death of Lennie Pope, his will was read. It contained the following provisions:
- $185,000 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.
- $340,000 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 | $ | 29,000 | |
Certificates of deposit | 94,000 | ||
Dividends receivable | 4,500 | ||
Life insurance policy | 525,000 | ||
Residence and personal effects | 545,000 | ||
Shares of Ford Motor Company | 87,000 | ||
Shares of Xerox Corporation | 94,000 | ||
(2) Collected life insurance policy.
(3) Collected dividends of $7,000.
(4) Discovered debts of $86,000.
(5) Conveyed title to the residence to Sue Pope along with the decedents personal effects.
(6) Discovered title to land valued at $30,000.
(7) Discovered additional debts of $52,000. Paid all of the debts totaling $138,000.
(8) Paid funeral expenses of $46,000.
(9) Conveyed cash of $185,000 to Ned Pope.
(10) Sold the shares of Ford for $103,500.
(11) Paid administrative expenses of $31,000.
(12) Made the appropriate payment to Harwood Pope.
b. Prepare a charge and discharge statement.
Required A Required B Prepare journal entries for the following transactions that subsequently occur: (If no entry is required for a transaction/event, select journal entry required" in the first account field.) View transaction list Journal entry worksheet Record property held by Lennie Pope at death. Note: Enter debits before credits. General Journal Debit Credit Transaction 01 Cash ESTATE OF LENNIE POPE Charge and Discharge Statement As to Principal and income I charge myself with: Assets subsequently discovered: $ 0 Total charges I credit myself with: Legacies distributed: 0 0 Total credits Balance on hand $ 0 As: As: Estate principal: $ Estate principal Estate Income:Step by Step Solution
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