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.
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