Accounting for estate principal and income. Jason Jackson was killed in a mountain-climbing accident in British Columbia. As Jason’s trusted friend and CPA, you have been named executor of his estate...

Accounting for estate principal and income. Jason Jackson was killed in a mountain-climbing accident in British Columbia. As Jason’s trusted friend and CPA, you have been named executor of his estate and guardian to his minor child, Cody Jackson. Jason’s estate consists of the following assets subject to probate:

Prepare journal entries to record the above inventory and the following events related to the estate principal and income:

1. Final medical and funeral expenses of $22,000 are paid.

2. An individual retirement account (IRA) naming Jackson’s estate as beneficiary and having a value of $37,000 subsequently is discovered.

3. Cash dividends of $1,000 on the GTE stock and $2,700 on the Merkt stock are received.

4. The vacant land in Colorado is sold for $150,000 less accrued property taxes of $2,000 and a broker’s commission of $8,000.