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After the death of Lennie Pope, his will was read. It contained the following provisions:
- $130,000 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.
- $440,000 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 | $ | 39,000 | |
| Certificates of deposit | | 104,000 | |
| Dividends receivable | | 5,500 | |
| Life insurance policy | | 575,000 | |
| Residence and personal effects | | 595,000 | |
| Shares of Ford Motor Company | | 97,000 | |
| Shares of Xerox Corporation | | 104,000 | |
| |
(2) Collected life insurance policy.
(3) Collected dividends of $9,000.
(4) Discovered debts of $96,000.
(5) Conveyed title to the residence to Sue Pope along with the decedents personal effects.
(6) Discovered title to land valued at $40,000.
(7) Discovered additional debts of $62,000. Paid all of the debts totaling $158,000.
(8) Paid funeral expenses of $56,000.
(9) Conveyed cash of $130,000 to Ned Pope.
(10) Sold the shares of Ford for $118,500.
(11) Paid administrative expenses of $41,000.
(12) Made the appropriate payment to Harwood Pope.
b. Prepare a charge and discharge statement.
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