Question

After the death of Lennie Pope, his will was read. It contained the following provisions:

• $150,000 in cash goes to decedent’s 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.
• $380,000 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	$	22,000
Certificates of deposit		87,000
Dividends receivable		3,800
Life insurance policy		490,000
Residence and personal effects		510,000
Shares of Ford Motor Company		80,000
Shares of Xerox Corporation		87,000

(2) Collected life insurance policy.

(3) Collected dividends of $5,600.

(4) Discovered debts of $79,000.

(5) Conveyed title to the residence to Sue Pope along with the decedent’s personal effects.

(6) Discovered title to land valued at $23,000.

(7) Discovered additional debts of $45,000. Paid all of the debts totaling $124,000.

(8) Paid funeral expenses of $39,000.

(9) Conveyed cash of $150,000 to Ned Pope.

(10) Sold the shares of Ford for $93,000.

(11) Paid administrative expenses of $24,000.

(12) Made the appropriate payment to Harwood Pope.

b. Prepare a charge and discharge statement.

Answer 1