Jerry Tasch’s will has the following provisions:$150,000 in cash goes to Thomas Thorne.All shares of Coca-Cola go to Cindy Phillips.Residence goes to Kevin Simmons.All other estate assets are to be liquidated with the resulting cash going to the First Church of Freedom, Missouri.Prepare journal entries for the following transactions:Discovered the following assets (at fair value):Collected interest of $7,000.Paid funeral expenses of $20,000.Discovered debts of $40,000.Located an additional savings account of $12,000.Conveyed title to the residence to Kevin Simmons.Collected life insurance policy.Discovered additional debts of $60,000. Paid debts totaling $100,000.Conveyed cash of $150,000 to appropriate beneficiary.Sold the shares of Polaroid for $112,000.Paid administrative expenses of $10,000. $ 80,000Cash.....Interest receivable....Life insurance policy300,000200,00050,000110,000Residence...Shares of Coca-Cola CompanyShares of Polaroid Corporation ....Shares of Ford Motor Company.140,000

Journal entries in the books of Jerry Tasch's Date Accounts title and explanation Debit $…

$ 80,000 Cash..... Interest receivable.... Life insurance policy 300,000 200,000 50,000 110,000 Residence... Shares of Coca-Cola Company Shares of Polaroid Corporation .... Shares of Ford Motor Company. 140,000

$ 80,000 Cash..... Interest receivable.... Life insurance policy 300,000 200,000 50,000 110,000 Residence... Shares of Coca-Cola Company Shares of Polaroid Corporation .... Shares of Ford Motor Company. 140,000

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 18MCQ

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Question

Jerry Tasch’s will has the following provisions:

$150,000 in cash goes to Thomas Thorne.
All shares of Coca-Cola go to Cindy Phillips.
Residence goes to Kevin Simmons.
All other estate assets are to be liquidated with the resulting cash going to the First Church of Freedom, Missouri.

Prepare journal entries for the following transactions:

Discovered the following assets (at fair value):
Collected interest of $7,000.
Paid funeral expenses of $20,000.
Discovered debts of $40,000.
Located an additional savings account of $12,000.
Conveyed title to the residence to Kevin Simmons.
Collected life insurance policy.
Discovered additional debts of $60,000. Paid debts totaling $100,000.
Conveyed cash of $150,000 to appropriate beneficiary.
Sold the shares of Polaroid for $112,000.
Paid administrative expenses of $10,000.

$ 80,000
Cash.....
Interest receivable....
Life insurance policy
300,000
200,000
50,000
110,000
Residence...
Shares of Coca-Cola Company
Shares of Polaroid Corporation ....
Shares of Ford Motor Company.
140,000

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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