The executor of Rose Shield's estate listed the following properties (at fair value): Cash $300,000 Life insurance receivable 200,000 Investments in stocks and bonds 100,000 Rental property 90,000 Personal property 130,000 a. Prepare journal entries to record the property held by Ms. Shield's estate and then each of the following transactions that occur in the months following the decedent's death: 1. Claims of $80,000 are made against the estate for various debts incurred before the decedent's death. 2. Interest of $12,000 is received from bonds held by the estate. Of this amount, $5,000 had been earned prior to death. 3. Ordinary repairs costing $6,000 are made to the rental property. 4. All debts ($80,000) are paid. 5. Stocks recorded in the estate at $16,000 are sold for $19,000 cash. 6. Rental income of $14,000 is collected. Of this amount, $2,000 had been earned prior to the decedent's death. 7. Cash of $6,000 is distributed to Jim Arness, an income beneficiary. 8. The proceeds from the life insurance policy are collected and the money is immediately distributed to Amanda Blake as specified in the decedent's will. 9. Funeral expenses of $10,000 are paid. b. Prepare in proper form a charge and discharge statement.

a. -- CashPrincipal ............................................................................... Life Insurance Receivable ............................................................... Investment in Stocks and Bonds..................................................... Rental Property ............................................................................... Personal Property .......................................................................... Estate Principal .................................................................. (To record property held by Rose Shields at death.) 300,000 200,000 100,000 90,000 130,000 820,000 1. No entry. Estates do not record liabilities until assets are used in payment. 2. CashPrincipal ............................................................................... CashIncome ................................................................................ Assets Subsequently Discovered (Interest Rec.) ............. Estate Income ................................................................... (To record receipt of interest income. The $5,000 earned prior to the decedent's death was not included in original listing of estate assets so it is an 'asset subsequently discovered'.) 3. ExpensesIncome ......................................................................... CashIncome ................................................................... (Ordinary repair expenses are made to rental property and are generally charged to income rather than principal.) 4. Debts of the Decedent ................................................................... CashPrincipal ................................................................. (To pay liabilities and obligations of the decedent.) 5. CashPrincipal .............................................................................. Investments in Stocks and Bonds ..................................... Gain on Sale of Stocks Principal ....................................... (To record sale of stocks and to reflect gain on such sale with the additional proceeds becoming part of the estate's principal.) 6. CashPrincipal .............................................................................. CashIncome ................................................................................ Assets Subsequently Discovered (Rent Rec.)................... Estate Income .................................................................... (To record receipt of rental income. The $2,000 earned prior to the decedent's death was not included in original listing of estate assets and is therefore an 'asset subsequently discovered'.) 7. LegacyJim Arness ...................................................................... CashIncome ................................................................... (Payment is made to income beneficiary.) 8. CashPrincipal .............................................................................. Life Insurance Receivable ................................................. (Collection is made from life insurance policy.) LegacyAmanda Blake ................................................................. CashPrincipal ................................................................. (Payment is made of proceeds from life insurance policy.) 9. Funeral Expenses ........................................................................... CashPrincipal.................................................................. (To record cost of decedent's funeral.) b. ESTATE OF ROSE SHIELDS Charge and Discharge Statement As to Principal I charge myself with: Assets per original inventory ................................... Assets subsequently discovered: Interest receivable ............................................... Rental income receivable .................................... Gain on sale of stocks .............................................. Total charges ....................................................... I credit myself with: Debts of decedent ..................................................... Funeral expenses ..................................................... Legacy: Amanda Blake (proceeds of life insurance) ............................................................ Estate principal .................................................... $540,000 Estate principal: Cash ........................................................................... Investments in stocks and bonds ............................ Rental property ......................................................... Personal property ..................................................... Estate principal .................................................... $540,000 As to Income I charge myself with: Interest income ......................................................... Rental income ........................................................... I credit myself with: Repair expenses ....................................................... Legacy: Jim Arness .................................................. Balance as to Income .......................................... 7,000 Balance as to income: Cash $ The executor of Rose Shield's estate listed the following properties (at fair value): Cash $300,000 Life insurance receivable 200,000 Investments in stocks and bonds 100,000 Rental property 90,000 Personal property 130,000 a. Prepare journal entries to record the property held by Ms. Shield's estate and then each of the following transactions that occur in the months following the decedent's death: 1. Claims of $80,000 are made against the estate for various debts incurred before the decedent's death. 2. Interest of $12,000 is received from bonds held by the estate. Of this amount, $5,000 had been earned prior to death. 3. Ordinary repairs costing $6,000 are made to the rental property. 4. All debts ($80,000) are paid. 5. Stocks recorded in the estate at $16,000 are sold for $19,000 cash. 6. Rental income of $14,000 is collected. Of this amount, $2,000 had been earned prior to the decedent's death. 7. Cash of $6,000 is distributed to Jim Arness, an income beneficiary. 8. The proceeds from the life insurance policy are collected and the money is immediately distributed to Amanda Blake as specified in the decedent's will. 9. Funeral expenses of $10,000 are paid. b. Prepare in proper form a charge and discharge statement