Please provide journal entries with correctly named accounts. The executor of So

Question

Please provide journal entries with correctly named accounts.

The executor of Someone's estate has listed the following properties at fair value: Cash $200,000, Life Insurance Receivable $500,000, Investment in Stocks and Bonds $50,000, Rental Property $100,000, and Personal Property $80,000. Additionally, the executor found $100,000 of various debts incurred before the decedent's death. The cost of Someone's funeral was $20,000.

Prepare the journal entry to record the property of the estate.

Prepare the journal entry for claims of $100,000 made against the estate for various debts incurred before the decedent's death, and $20,000 for funeral expense bills.      

Prepare the journal entry to record interest of $5,000 that was earned on the bonds of the estate. Of this amount, $2,000 had been earned prior to death.

Prepare the journal entry to record ordinary repairs to the rental property of $5,000.

Prepare the journal entry to record the payment of the estate's liabilities for debts incurred prior to the decedent's death.

Prepare the journal entry to record the sales of the stocks and bonds for $120,000

Prepare the journal entry to record the collection of rental income of $10,000. $1,000 had been earned prior to the decedent's death.

Prepare the journal entry to record the distribution of $4,000 to Anna Lee, an income beneficiary.

Prepare the journal entry to record the collection of the life insurance policy.

Prepare the journal entry to record payment of $20,000 in funeral expenses.

Explanation / Answer

1

Cash—Principal

$2,00,000.00

Life Insurance Receivable

$5,00,000.00

Investment in Stocks and Bonds

$50,000.00

Rental Property

$1,00,000.00

Personal Property

$80,000.00

Estate Principal

$9,30,000.00

(To record property held by Rose Shields at death.)

2

No entry. Estates do not record liabilities until assets are used in payment.

3

Cash—Principal

$2,000.00

Cash—Income

$3,000.00

Assets Subsequently Discovered (Interest Rec.)

$2,000.00

Estate Income

$3,000.00

(To record receipt of interest income. The $2,000 earned prior to the decedent's death was not included in original listing of estate assets so it is an ‘asset subsequently discovered’.)

4

Expenses—Income

$5,000.00

Cash—Income

$5,000.00

(Ordinary repair expenses are made to rental property and are generally charged to income rather than principal.)

5

Debts of the Decedent

$1,00,000.00

Cash—Principal

$1,00,000.00

(To pay liabilities and obligations of the decedent.)

6

Cash—Principal

$1,20,000.00

Investments in Stocks and Bonds

$50,000.00

Gain on Sale of Stocks Principal

$70,000.00

(To record sale of stocks and to reflect gain on such sale with the additional proceeds becoming part of the estate’s principal.)

7

Cash—Principal

$1,000.00

Cash—Income

$9,000.00

Assets Subsequently Discovered (Rent Rec.)

$1,000.00

Estate Income

$9,000.00

(To record receipt of rental income. The $1,000 earned prior to the decedent's death was not included in original listing of estate assets and is therefore an ‘asset subsequently discovered’.)

8

Legacy— Anna Lee

$4,000.00

Cash—Income

$4,000.00

(Payment is made to income beneficiary.)

9

Cash—Principal

$5,00,000.00

Life Insurance Receivable

$5,00,000.00

(Collection is made from life insurance policy.)

10

Funeral Expenses

$20,000.00

Cash—Principal

$20,000.00

(To record cost of decedent's funeral.)

1

Cash—Principal

$2,00,000.00

Life Insurance Receivable

$5,00,000.00

Investment in Stocks and Bonds

$50,000.00

Rental Property

$1,00,000.00

Personal Property

$80,000.00

Estate Principal

$9,30,000.00

(To record property held by Rose Shields at death.)

2

No entry. Estates do not record liabilities until assets are used in payment.

3

Cash—Principal

$2,000.00

Cash—Income

$3,000.00

Assets Subsequently Discovered (Interest Rec.)

$2,000.00

Estate Income

$3,000.00

(To record receipt of interest income. The $2,000 earned prior to the decedent's death was not included in original listing of estate assets so it is an ‘asset subsequently discovered’.)

4

Expenses—Income

$5,000.00

Cash—Income

$5,000.00

(Ordinary repair expenses are made to rental property and are generally charged to income rather than principal.)

5

Debts of the Decedent

$1,00,000.00

Cash—Principal

$1,00,000.00

(To pay liabilities and obligations of the decedent.)

6

Cash—Principal

$1,20,000.00

Investments in Stocks and Bonds

$50,000.00

Gain on Sale of Stocks Principal

$70,000.00

(To record sale of stocks and to reflect gain on such sale with the additional proceeds becoming part of the estate’s principal.)

7

Cash—Principal

$1,000.00

Cash—Income

$9,000.00

Assets Subsequently Discovered (Rent Rec.)

$1,000.00

Estate Income

$9,000.00

(To record receipt of rental income. The $1,000 earned prior to the decedent's death was not included in original listing of estate assets and is therefore an ‘asset subsequently discovered’.)

8

Legacy— Anna Lee

$4,000.00

Cash—Income

$4,000.00

(Payment is made to income beneficiary.)

9

Cash—Principal

$5,00,000.00

Life Insurance Receivable

$5,00,000.00

(Collection is made from life insurance policy.)

10

Funeral Expenses

$20,000.00

Cash—Principal

$20,000.00

(To record cost of decedent's funeral.)

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