Willie Walker, a widower, died on February 1, 20X8. He had no living relatives. The following selected events occurred after Willie’s death: Mary Paxton, the executrix named in the will, filed an inventory of the estate assets consisting of: Cash $20,000 Owl Corporation 12% bonds, paying interest semiannually on December 1, and June 1 (market value excluding interest, at date of death, $91,000) face value 70,000 Eagle Corporation common stock 38,000 Eagle Corporation cash dividend declared January 2, 20X8 payable February 15, 20X8, to holders of record as of January 25, 20X8 (state law stipulates that the date of record is the governing date) 2,000 A pair of snowmobiles with trailer 5,000 Life insurance policy –face value 60,000 The beneficiary named in the policy is dead Since Walker did not designate a new beneficiary, the proceed now go to the estate. Items charged by Walker (prior to his death) to his Diners Club card totaled $390..These items were paid. The executrix prepared the final income tax return to the decedent. paying the income tax due $12,000 The snowmobiles and trailer were sold for $4,200. The following payments were made: Legal fees for assistance in probating the will 3,000 Funeral expenses 4,710 The dividend on Eagle Corporation common stock was received. On June 1, a check for the semiannual interest on Owl Corporation was received. A check for $68,000 was received from the life insurance agency. The additional $8,000 represent another policy not identified at the time of death. On December 1, a check for the semiannual interest on Owl Corporation bonds was received. The executrix fee of $8,000 was approved for payment by the court. Payment was made, with $500 chargeable to income and the balance chargeable to principal. Walker’s will stipulated that $40,000 be given to Carey Jackson, his housekeeper. The legacy was distributed on December 30, 20X8. Required: Journalize the entries to record each transaction.

Willie Walker, a widower, died on February 1, 20X8. He had no living relatives. The following selected events occurred after Willie’s death: Mary Paxton, the executrix named in the will, filed an inventory of the estate assets consisting of: Cash $20,000 Owl Corporation 12% bonds, paying interest semiannually on December 1, and June 1 (market value excluding interest, at date of death, $91,000) face value 70,000 Eagle Corporation common stock 38,000 Eagle Corporation cash dividend declared January 2, 20X8 payable February 15, 20X8, to holders of record as of January 25, 20X8 (state law stipulates that the date of record is the governing date) 2,000 A pair of snowmobiles with trailer 5,000 Life insurance policy –face value 60,000 The beneficiary named in the policy is dead Since Walker did not designate a new beneficiary, the proceed now go to the estate. Items charged by Walker (prior to his death) to his Diners Club card totaled $390..These items were paid. The executrix prepared the final income tax return to the decedent. paying the income tax due $12,000 The snowmobiles and trailer were sold for $4,200. The following payments were made: Legal fees for assistance in probating the will 3,000 Funeral expenses 4,710 The dividend on Eagle Corporation common stock was received. On June 1, a check for the semiannual interest on Owl Corporation was received. A check for $68,000 was received from the life insurance agency. The additional $8,000 represent another policy not identified at the time of death. On December 1, a check for the semiannual interest on Owl Corporation bonds was received. The executrix fee of $8,000 was approved for payment by the court. Payment was made, with $500 chargeable to income and the balance chargeable to principal. Walker’s will stipulated that $40,000 be given to Carey Jackson, his housekeeper. The legacy was distributed on December 30, 20X8. Required: Journalize the entries to record each transaction.

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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Willie Walker, a widower, died on February 1, 20X8. He had no living relatives. The following selected events occurred after Willie’s death:

Mary Paxton, the executrix named in the will, filed an inventory of the estate assets consisting of:

Cash $20,000

Owl Corporation 12% bonds, paying interest semiannually

on December 1, and June 1 (market value excluding interest,

at date of death, $91,000) face value 70,000

Eagle Corporation common stock 38,000

Eagle Corporation cash dividend declared January 2, 20X8

payable February 15, 20X8, to holders of record as of

January 25, 20X8 (state law stipulates that the date of

record is the governing date) 2,000

A pair of snowmobiles with trailer 5,000

Life insurance policy –face value 60,000

The beneficiary named in the policy is dead

Since Walker did not designate a new beneficiary, the

proceed now go to the estate.

Items charged by Walker (prior to his death) to his Diners Club card totaled $390..These items were paid.
The executrix prepared the final income tax return to the decedent. paying the income tax due $12,000
The snowmobiles and trailer were sold for $4,200.
The following payments were made:
1. Legal fees for assistance in probating the will 3,000
2. Funeral expenses 4,710
The dividend on Eagle Corporation common stock was received.
On June 1, a check for the semiannual interest on Owl Corporation was received.
A check for $68,000 was received from the life insurance agency. The additional $8,000 represent another policy not identified at the time of death.
On December 1, a check for the semiannual interest on Owl Corporation bonds was received.
The executrix fee of $8,000 was approved for payment by the court. Payment was made, with $500 chargeable to income and the balance chargeable to principal.
Walker’s will stipulated that $40,000 be given to Carey Jackson, his housekeeper. The legacy was distributed on December 30, 20X8.

Required: Journalize the entries to record each transaction.

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