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What is the solution to this problem? After the death of Lennie Pope, his will was read. It contained the following provisions: $195,000 in cash
What is the solution to this problem?
After the death of Lennie Pope, his will was read. It contained the following provisions:
$195,000 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. |
$360,000 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: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
(1) | Discovered the following assets (at fair value): |
Cash | $ | 31,000 |
Certificates of deposit | 96,000 | |
Dividends receivable | 4,700 | |
Life insurance policy | 535,000 | |
Residence and personal effects | 555,000 | |
Shares of Ford Motor Company | 89,000 | |
Shares of Xerox Corporation | 96,000 | |
(2) | Collected life insurance policy. |
(3) | Collected dividends of $7,400. |
(4) | Discovered debts of $88,000. |
(5) | Conveyed title to the residence to Sue Pope along with the decedents personal effects. |
(6) | Discovered title to land valued at $32,000. |
(7) | Discovered additional debts of $54,000. Paid all of the debts totaling $142,000. |
(8) | Paid funeral expenses of $48,000. |
(9) | Conveyed cash of $195,000 to Ned Pope. |
(10) | Sold the shares of Ford for $106,500. |
(11) | Paid administrative expenses of $33,000. |
(12) | Made the appropriate payment to Harwood Pope. |
b. | Prepare a charge and discharge statement. |
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