Buddy,a Dog,is Cared for by a Trust Set Up by His

question 49

Essay

Buddy,a dog,is cared for by a trust set up by his owner's will.The following transactions occurred for the trust.
1.The trust was established with $100,000 from his owner's estate,by deposit to a savings account.
2.A check is written to Paws and Claws Puppy Farm to cover the first month of Buddy's room and board,for $680.
3.A check is received for interest earned on the savings account amounting to $417.
4.Buddy dies.Paws and Claws sends a final room and board bill for $430,with additional charges for Buddy's burial of $270.The invoice is paid.
5.The balance of the trust is turned over to the Humane Society,as prescribed by Buddy's owner's will,and the trust is closed.
Required:
Prepare the journal entries for the listed transactions.Disregard the impact of estate and income taxes.

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Definitions:

Median Family Income

The middle value of total income earned by a family, divided in such a way that half of the families earn less and the other half earns more.

Extended Family

A family unit that extends beyond the immediate family, including grandparents, aunts, uncles, and other relatives.

American Indian

Indigenous peoples of the Americas, particularly those who are recognized as the original inhabitants of the United States.

Elders

Older individuals, often respected for their wisdom and experience, who may hold a position of authority within a community or family.