After the death of Lennie Pope, his will was read. It contained the following provisions:∙ $110,000 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 . . . . . . . . . . . . . . . . . . . . $ 19,000Certificates of deposit .. . . . . .90,000Dividends receivable . . . . . . . . . 3,000Life insurance policy . . . . . . . . 450,000Residence and personal effects . . . . . . . . . . . . . . . . 470,000Shares of Ford Motor Company . . . . . . . . . . . . . . . . 72,000Shares of Xerox Corporation . . . . . . . . . . . . . . . . . . . 97,000 (2) Collected life insurance policy.(3) Collected dividends of $4,000.(4) Discovered debts of $71,000.(5) Conveyed title to the residence to Sue Pope along with the decedent’s personal effects.(6) Discovered title to land valued at $15,000.(7) Discovered additional debts of $37,000. Paid all of the debts totaling $108,000.(8) Paid funeral expenses of $31,000.(9) Conveyed cash of $110,000 to Ned Pope. (10) Sold the shares of Ford for $81,000.(11) Paid administrative expenses of $16,000.(12) Made the appropriate payment to Harwood Pope.b. Prepare a charge and discharge statement.
After the death of Lennie Pope, his will was read. It contained the following provisions:
∙ $110,000 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
(1) Discovered the following assets (at fair value):
Cash . . . . . . . . . . . . . . . . . . . . $ 19,000
Certificates of deposit .. . . . . .90,000
Dividends receivable . . . . . . . . . 3,000
Life insurance policy . . . . . . . . 450,000
Residence and personal effects . . . . . . . . . . . . . . . . 470,000
Shares of Ford Motor Company . . . . . . . . . . . . . . . . 72,000
Shares of Xerox Corporation . . . . . . . . . . . . . . . . . . . 97,000
(2) Collected life insurance policy.
(3) Collected dividends of $4,000.
(4) Discovered debts of $71,000.
(5) Conveyed title to the residence to Sue Pope along with the decedent’s personal effects.
(6) Discovered title to land valued at $15,000.
(7) Discovered additional debts of $37,000. Paid all of the debts totaling $108,000.
(8) Paid funeral expenses of $31,000.
(9) Conveyed cash of $110,000 to Ned Pope. (10) Sold the shares of Ford for $81,000.
(11) Paid administrative expenses of $16,000.
(12) Made the appropriate payment to Harwood Pope.
b. Prepare a charge and discharge statement.
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