You Are Serving as the Executor for the Estate of Scott

question 3

Essay

You are serving as the executor for the estate of Scott Michaels,who passed away on June 28,2011.The following transactions occur during the balance of June and July,2011.
1.On July 11,you issued a check to pay Scott's final medical expenses of $28,000.
2.In Scott's will,he wanted $90,000 given to the American Society for the Prevention of Cruelty to Animals (ASPCA).After examining the assets,you determined that the estate's assets will adequately cover all expenses and specific devises,so on July 13,you issued a check to the ASPCA for $90,000.
3.On July 15,you received a check in the amount of $27,900 from First State Bank of Greenville.It is the maturity value and interest from a certificate of deposit in the amount of $25,000 that was not included in the estate's initial inventory.The CD matured on June 30,2011.
4.On July 26,you received interest of $2,000 on Greenville City bonds.Interest of $180 was earned after the date of death.The balance was earned prior to death,and had been accrued.The bonds were included in the initial inventory.
5.On July 28,you issued a check to pay Scott's funeral expenses of $7,600.
Required:
Prepare the necessary journal entries for the above transactions.You may ignore any estate or income taxes.

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Definitions:

Vertical Analysis

A technique for analyzing financial statements where every item under the three key account categories (assets, liabilities, and equity) on a balance sheet is shown as a percentage of the total for each category.

Operating Expenses

Costs related to the operation of a business, excluding the cost of goods sold, financing costs, and taxes.

Net Sales

The total income generated from sales by a firm, after reducing it for returns, discounts, and allowances due to damaged or absent goods.

Inventory Turnover

A proportion indicating the frequency at which a company's stock is sold and replenished during a given timeframe.