Exam 19: Accounting for Estates and Trusts

REFERENCE: Ref.19_05 The executor of Danny Mack'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 Danny Mack's funeral was $20,000. -Prepare a Charge and Discharge Statement for the estate.

The provisions of a will currently undergoing probate are: "One thousand shares of Wal-mart stock to my son;$10,000 in cash from my savings account to my brother;$5,000 in cash to my daughter;and any remaining property divided equally between my son and daughter." At the time of death,the estate included 1,000 shares of Walmart stock and $6,000 cash in the savings account.What would the brother have received from the settlement of the estate?

When an estate does not have sufficient assets to satisfy all claims against it,what claim has the highest priority?

A testamentary trust is a trust

REFERENCE: Ref.19_02 The provisions of a will currently undergoing probate are: "Two thousand shares of Dorn stock to my son;$30,000 in cash from my savings account to my brother;$50,000 in cash to my daughter;and any remaining property divided equally between my son and daughter." -Assume that,at the time of death,the estate included 1,200 shares of Dorn stock,$60,000 cash in the savings account,and $70,000 in cash from other sources.What would the son have received from the settlement of the estate?

The provisions of a will currently undergoing probate are: "One thousand shares of Wal-mart stock to my son;$10,000 in cash from my savings account to my brother;$5,000 in cash to my daughter;and any remaining property divided equally between my son and daughter." At the time of death,the estate included 1,400 shares of Walmart stock and $25,000 cash in the savings account.What would the son have received from the settlement of the estate?

What is meant by estate accounting?

REFERENCE: Ref.19_05 The executor of Danny Mack'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 Danny Mack's funeral was $20,000. -Prepare the journal entry to record the sales of the Stocks and bonds for $120,000

The estate of Bobbi Jones has the following provisions: total value of estate assets $2,000,000,amount specified to convey to a spouse $1,000,000,amount specified to convey to children $200,000,total debts 400,000,administrative expenses $50,000 and funeral expenses of $30,000.What is the value of the taxable estate?

REFERENCE: Ref.14_01 The terms of a will currently undergoing probate are: "A gift to my brother David of $25,000 cash;to my son James,$50,000 from my savings account;and to my Daughter Lila,all of my remaining property." At the time of death,the balance in the savings account was $40,000,and there was additional cash (after payment of funeral expenses and all claims against the estate)of $70,000. -The gift to James is a

What is the meaning of dying intestate?

REFERENCE: Ref.19_05 The executor of Danny Mack'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 Danny Mack's funeral was $20,000. -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.

Funeral expenses of $26,000 were paid. Prepare the journal entry to record the transaction.

REFERENCE: Ref.14_01 The terms of a will currently undergoing probate are: "A gift to my brother David of $25,000 cash;to my son James,$50,000 from my savings account;and to my Daughter Lila,all of my remaining property." At the time of death,the balance in the savings account was $40,000,and there was additional cash (after payment of funeral expenses and all claims against the estate)of $70,000. -The gift to David is a

A demonstrative legacy is a

What is the difference between an executor and an administrator?

REFERENCE: Ref.19_05 The executor of Danny Mack'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 Danny Mack's funeral was $20,000. -Prepare the journal entry to record payment of $20,000 in funeral expenses.

In an executor's accounting for an estate,debts and other obligations are recorded

Cash of $195,000 was conveyed to the appropriate beneficiary. Prepare the journal entry to record the transaction.

Executor's fees and court costs for settling an estate usually