Cash........ Life insurance receivable Investments in stocks and bonds Rental property... Personal property.. $300,000 100,000 90,000 130,000
Cash........ Life insurance receivable Investments in stocks and bonds Rental property... Personal property.. $300,000 100,000 90,000 130,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 16MCQ
Related questions
Question
The executor of Rose Shield’s estate listed the following properties (at fair value):
- Prepare
journal entries to record the property held by Ms. Shield’s estate and then each of the following transactions that occur in the months following the decedent’s death:
- Claims of $80,000 are made against the estate for various debts incurred before the decedent’s death.
- Interest of $12,000 is received from bonds held by the estate. Of this amount, $5,000 had been earned prior to death.
- Ordinary repairs costing $6,000 are made to the rental property.
- All debts ($80,000) are paid.
- Stocks recorded in the estate at $16,000 are sold for $19,000 cash.
- (Rental income of $14,000 is collected. Of this amount, $2,000 had been earned prior to the decedent’s death.
- (7) Cash of $6,000 is distributed to Jim Arness, an income beneficiary.
- The proceeds from the life insurance policy are collected and the money is immediately distributed to Amanda Blake as specified in the decedent’s will.
- Funeral expenses of $10,000 are paid.
- Prepare in proper form a charge and discharge statement.
Transcribed Image Text:Cash........
Life insurance receivable
Investments in stocks and bonds
Rental property...
Personal property..
$300,000
100,000
90,000
130,000
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