The executor of Gina Purcell’s estate has recorded the following information:Debts of $17,000 still remain to be paid. The Dell shares have been conveyed to the appropriate beneficiary. Assume that Ms. Purcell’s will stated that all executor fees are to be paid from principal.Prepare an interim charge and discharge statement for this estate. Assets discovered at death (at fair value):$600,000200,000Cash.......Life insurance receivable.Investments:Walt Disney Company.Polaroid CorporationFord Motor Company..Dell Inc. ...11,00027,00034,00032,000300,000Rental property..Cash outflows:Funeral expenses..Executor fees.....Ordinary repairs of rental property.Debts ....Distribution of income to income beneficiary.$ 21,00012,0002,00081,0004,000300,000Distribution to charitable remainder trustCash inflows:Sale of Polaroid stock ....Rental income ($4,000 earned prior to death).Dividend income ($2,000 declared prior to death)Life insurance proceeds ...$ 30,00011,00012,000200,000

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Answered: Assets discovered at death (at fair…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The executor of Gina Purcell’s estate has recorded the following information:

Debts of $17,000 still remain to be paid. The Dell shares have been conveyed to the appropriate beneficiary. Assume that Ms. Purcell’s will stated that all executor fees are to be paid from principal.

Prepare an interim charge and discharge statement for this estate.

Assets discovered at death (at fair value):
$600,000
200,000
Cash.......
Life insurance receivable.
Investments:
Walt Disney Company.
Polaroid Corporation
Ford Motor Company..
Dell Inc. ...
11,000
27,000
34,000
32,000
300,000
Rental property..
Cash outflows:
Funeral expenses..
Executor fees.....
Ordinary repairs of rental property.
Debts ....
Distribution of income to income beneficiary.
$ 21,000
12,000
2,000
81,000
4,000
300,000
Distribution to charitable remainder trust
Cash inflows:
Sale of Polaroid stock ....
Rental income ($4,000 earned prior to death).
Dividend income ($2,000 declared prior to death)
Life insurance proceeds ...
$ 30,000
11,000
12,000
200,000

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