Heron died in the summer of 2014. The following transactions occurred relating to Heron’s estate.
1.
Heron’s estate included a $50,000 Certificate of Deposit. When Heron died, there was $250 accrued but
unpaid interest. When the check was received for the normal semiannual interest payment, it was in the
amount of $1,250.
2.
Heron’s will requested a specific transfer to the local playhouse in the amount of $20,000. Herons estate
should be adequate to cover all obligations and devises, and the amount is paid.
3.
A fee for probate court is paid amounting to $1,400.
4.
Funeral expenses are paid amounting to $13,000.
5.
A bill is received from the anesthesiologist relating to Heron’s last hospital stay for $22,000. The bill is
not covered by insurance, and was not included in the estate inventory. The bill is verified and paid.
Required:
Prepare the journal entries for the listed transactions. Disregard the impact of estate and income taxes. Answer:
1. Cash – principal
250
Cash – income
Interest Receivable – bonds
1,000
250
Estate Income
1,000
2. Devise – Playhouse
Cash – principal
20,000
20,000
3. Probate Expenses
Cash – principal
1,400
1,400
4. Funeral Expenses
Cash – principal
13,000
13,000