The executor of Rose Shield's estate listed the following properties (at fair value): $ 300,000 200,000 100,000 90,000 130,000 Cash Life insurance receivable Investments in stocks and bonds Rental property Personal property Following are the transactions that occur in the months following the decedent's death: (1) Claims of $80,000 are made against the estate for various debts incurred before the decedent's death. (2) Interest of $12,000 is received from bonds held by the estate. Of this amount, $5,000 had been earned prior to death. (3) Ordinary repairs costing $6,000 are made to the rental property. (4) All debts ($80,000) are paid. (5) Stocks recorded in the estate at $16,000 are sold for $19,000 cash. (6) 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. (8) 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. (9) Funeral expenses of $10,000 are paid. a. Prepare journal entries to record the property held by Ms. Shield's estate and then each of the above transactions that occur in the months following the decedent's death: b. Prepare in proper form a charge and discharge statement.
The executor of Rose Shield's estate listed the following properties (at fair value): $ 300,000 200,000 100,000 90,000 130,000 Cash Life insurance receivable Investments in stocks and bonds Rental property Personal property Following are the transactions that occur in the months following the decedent's death: (1) Claims of $80,000 are made against the estate for various debts incurred before the decedent's death. (2) Interest of $12,000 is received from bonds held by the estate. Of this amount, $5,000 had been earned prior to death. (3) Ordinary repairs costing $6,000 are made to the rental property. (4) All debts ($80,000) are paid. (5) Stocks recorded in the estate at $16,000 are sold for $19,000 cash. (6) 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. (8) 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. (9) Funeral expenses of $10,000 are paid. a. Prepare journal entries to record the property held by Ms. Shield's estate and then each of the above transactions that occur in the months following the decedent's death: b. Prepare in proper form a charge and discharge statement.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter4: Gross Income
Section: Chapter Questions
Problem 11P
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Question
Hello, I need help with the answers under "I credit myself with" "estate principal" there are 4 of them in total that are blank. they have a zero value.
I cannot fgure them out.
Transcribed Image Text:The executor of Rose Shield's estate listed the following properties (at fair value):
Cash
$ 300,000
Life insurance receivable
200,000
Investments in stocks and bonds
Rental property
Personal property
100,000
90,000
130,000
Following are the transactions that occur in the months following the decedent's death:
(1) Claims of $80,000 are made against the estate for various debts incurred before the decedent's death.
(2) Interest of $12,000 is received from bonds held by the estate. Of this amount, $5.000 had been earned prior to death.
(3) Ordinary repairs costing $6,000 are made to the rental property.
(4) All debts ($80,000) are paid.
(5) Stocks recorded in the estate at $16.000 are sold for $19.000 cash.
(6) 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.
(8) 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.
(9) Funeral expenses of $10,000 are paid.
a. Prepare journal entries to record the property held by Ms. Shield's estate and then each of the above transactions that occur in the
months following the decedent's death:
b. Prepare in proper form a charge and discharge statement.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Prepare journal entries to record the property held by Ms. Shield's estate and then each of the above transactions that occur in the
months following the decedent's death: (If no entry is required for a transaction/event, select "No journal entry required" in the first
account field.)
Transcribed Image Text:As to Principal
I charge myself with:
Assets per original inventory
$ 820,000
Assets subsequently discovered:
Interest receivable
$
5,000
Rental income receivable
2,000
7,000
Gain on sale of stocks
3,000
Total charges
$ 830,000
I credit myself with:
Legacy: Amanda Blake
200,000
Debts of decedent
80,000
Funeral expenses
10,000
290,000
Estate principal
$ 540,000
Estate principal:
Cash
$ 236,000
Rental property
90,000
Personal property
130,000
Investments in stocks and bonds
84,000
$
Estate principal
$ 540,000
As to Income
I charge myself with:
Interest income
$
7,000
Rental income
12,000
이 S
19,000
I credit myself with:
Repair expenses
$
6,000
Legacy: Jim Arness
6,000
12,000
Balance as to income
$
7,000
Balance as to income:
Cash
$
7,000
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