Question

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

• $125,000 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.
• $330,000 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	$	17,000
Certificates of deposit		82,000
Dividends receivable		3,300
Life insurance policy		465,000
Residence and personal effects		485,000
Shares of Ford Motor Company		75,000
Shares of Xerox Corporation		82,000

(2) Collected life insurance policy.

(3) Collected dividends of $4,600.

(4) Discovered debts of $74,000.

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

(6) Discovered title to land valued at $18,000.

(7) Discovered additional debts of $40,000. Paid all of the debts totaling $114,000.

(8) Paid funeral expenses of $34,000.

(9) Conveyed cash of $125,000 to Ned Pope.

(10) Sold the shares of Ford for $85,500.

(11) Paid administrative expenses of $19,000.

(12) Made the appropriate payment to Harwood Pope.

b. Prepare a charge and discharge statement.

Answer 1

No necwey transactions uornal entries o he given Edeade pineal centi featesf deostet dviderds Carh ife inor une foch thaes Reidente € poworal etfeats H000 t 8dcoo 3300 465000 485000 75000t 88000 lo09300 Earate poincipal: a09300 for dhe diacoverecd ames at hejoconal eny sheen beloes as heindair Values

Page-no Panticulan Debit Gredit Curh 7ooo Centi ficates ofdepeonit 82000 3300 Divi dends receivable 465000 inbwrance Residence & pusonal etfecls485o00 T5000 Comgang shares of ford motar shanes of Xerox corporation Exkate principal la09300 Cotlected the te snance Tournal eory Panticula Credit Debil carh 465000 life inunane receivable -jabl; estate 465000 Codlected dividende f /4600 carh - 3300 Ovidends recei wabje 1300 3300 4600 Fstate ncome

Gredit ttiaulan Debit Canh 4600 Dividend veceivable 3300 Edate income 1300 Piocovened debs gf 74000 not recorded n( The discovened debb paid ane eceived +they ecorded No entry it he dit to dhe Yesidence to Soe pope alone Coveged decadentts ptrsonal etheca Debit Faticular Gedit Lgery 485000 SP .48S000 Residence& pereanal eftceds

ON Dibcovened tile do land yalued at 418000 Gedlit anticulan Debit 41 Amoe Aubaequenty dieRd Land 8000 $18000 f dhe Dfacovered additional debk qf 440,000. aid all Aotaling L141000 $ 74000 40000 4000 cnly recorded the discovened debf 74000 No are received not vecorded until he debls and liabibtes CUte jhe paid record dhe pamest of debls Gredit Particulan Debi Debb the decedert 4114000 Corsh 14,000

fogeNo Paid funeral expenses of 434000 Gedit Particulan Debit Fun enal adminitative opuso434000 Cash $ 34000 Ned pop Cash 15000 to Coneyed Gedit Taticular Debit Ligay N.P $1a5000 - (ash asooo sod the haseo of ford for 6500 Cash 85, 500 子500○ ivefmenth fovd motor company - Gain sale f invefment 8550075000 on Gedit Panticular Debit Cash 85500 rveshmant in fad meftr cma 75000 Gain on tale f invehmet t0500

Paicd admininalive expensto 10 Geclit Panticaulan Debit Funtnal admnisthchve expen 000 Cash 19000 Made he appropriake payment o Harascod Pope antiular Debit Gredit Legory 85500 Canh 85500 Cfem 85500 P n the above, skatemant and dichange Pagarechange The charge dcharge akatements s as rocon beleas

Poye NO charge & discharge shatement as to pincipal g E income 2 dange ypel ath |Aanebper original ventory Aubosegpenty dicovered fand a09300 Qo081 jale of ord motor och Gain on 00901p pividend com p1339100 1300 1otal charees mgodf coih Creclit Debls Decedent 14000 Funcral adminishative cxpensts 53000 Aegadis daibued SP 485000 695500 862506) HP 85500 Total credila 316600 Balances an hand ahale principal ash Cenfihicated of depositc 193300 8aooo Land 8000 Shanen do 8 2000

ege.ne state principal 375300 1300 carsh