Question

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

• $165,000 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.
• $300,000 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	$	25,000
Certificates of deposit		90,000
Dividends receivable		4,100
Life insurance policy		505,000
Residence and personal effects		525,000
Shares of Ford Motor Company		83,000
Shares of Xerox Corporation		90,000

(2) Collected life insurance policy.

(3) Collected dividends of $6,200.

(4) Discovered debts of $82,000.

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

(6) Discovered title to land valued at $26,000.

(7) Discovered additional debts of $48,000. Paid all of the debts totaling $130,000.

(8) Paid funeral expenses of $42,000.

(9) Conveyed cash of $165,000 to Ned Pope.

(10) Sold the shares of Ford for $97,500.

(11) Paid administrative expenses of $27,000.

(12) Made the appropriate payment to Harwood Pope.

b. Prepare a charge and discharge statement.

ESTATE OF LENNIE POPE Charge and Discharge Statement As to Principal and income I charge myself with: Assets subsequently discovered: Total charges I credit myself with: Legacies distributed:

Answer 1

Page No o Journal entries for the given toon Sortions Estate Principal Cash of Costificates of dolasts a divdards Residence & Personal offorts - Scoot ao 0ot 4, 100t sosooo et S2scoot 8300ot aoooo . Estate principal a $13.22, 100 ate Sousral entry for the discoverred assets of their Nawes is as shown below: Pastirears 25000 costiticafar of deposit biudonds gecavable life insusance Policy Sosooo Residence & pessonal affects S25oco stases of food motor Company 83000 shases of fasox Corporation 9oooo

Comodad the train Stotorto Poliny Siya boravka. Dysler Sogooo Contacted discards of $6.200 ... Cash & C200 Osdords geconvable & 4,100 rshore to come r & Groo- &4000 $2,100 Discounted dobts of $82,000 the discovered dofts & liabilities are not secosded Convoyd tifte to the sosidence to sue Pope along with the decandards passoral egfoods. logory so Rasidone & possoral effects 45. 25.000

God lielo od 5.00 til Oyo donde o 8.00, seco en 1000 No anothy decendo& the discopred dold & $82.000 as tvo danas and rabanas aos not acorded enth thay Furanol a administintive Qarorga tur eso

91.60o $1.65.000 sold the shares of good foo & 97,500 Investment in food motor Company - $83.000 hain on sale of investmant a 27,5oo - 83000 - $ 19. Soo az, Soo Thuastment in food molod Company Gain on sale of investment paid administrative expenses of $27,000 funedal & administrative of flouse Mada tre apropiate rajouant to haswood Pope. Pasticadas legacy $a 7.500 &97. Soo In the above legacy floor $97. 5oo (from 10)

6 propose a charge and discharge stadament. the charge & discharge statements is as shown below. Chasse & disharge stalonart as to Drinciple auch income Asses Subscortly discoveted I credit myself with Turosod & administrative Perforses 5:25.6oo 165.000 atsoo 787 500 (9 865oo) 398200 Estate principal cash 90.CSS 96.900 do 100 Estate ornearl Cash