Question
The executor of Rose Shields estate listed the following properties (at fair value): Cash $ 300,000 Life insurance receivable 200,000 Investments in stocks and bonds
| The executor of Rose Shields 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 | |
|
| ||
| Following are the transactions that occur in the months following the decedents death: | |
| (1) | Claims of $80,000 are made against the estate for various debts incurred before the decedents 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 decedents 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 decedents will. |
| (9) | Funeral expenses of $10,000 are paid. Prepare in Proper form a charge and discharge form |
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Fundamental Accounting Principles
Authors: Larson Kermit, Tilly Jensen
Volume I, 14th Canadian Edition
71051503, 978-1259066511, 1259066517, 978-0071051507
