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. Cash........Life insurance receivableInvestments in stocks and bondsRental property...Personal property..$300,000100,00090,000130,000

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Answered: Cash........ Life insurance receivable…

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

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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.

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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Cash........ Life insurance receivable Investments in stocks and bonds Rental property... Personal property.. $300,000 100,000 90,000 130,000