1. On January 5, Pane buys land and a building for one lump-sum of cash. Contract price: $590,000 Fair Value: Land $400,000 Fair Value: Building $200,000 Useful Life of Building (years) 20

2. On January 7, Pane purchases a machine to make stained glass windows. Pane pays cash for the machine. The machine has no residual value. Contract Price: $105,500 Transportation Costs: $7,200 Installation Costs: $4,956 Sales Tax on Contract Price: 10% Useful Life of Machine (years) 6

3. On January 15, the company pays off the previous year's payroll tax liabilities that are reflected in the January 1, 2018 trial balance (the trial balance is found on the "Information" tab). The payroll tax liability accounts are 6060, 6070, 6080 and 6090.

4. On February 9, Pane purchases $32,000,000 of inventory on account. Note that the company employs a perpetual inventory system.

5. On April 1, Pane makes a credit sale to Gane Co. and requires Gane to sign a $50,000, 2-year (24-month) note. Interest of 12% is to be assessed in addition to the face value of the note and collected at maturity. The cost of the inventory sold totals $38,000.

6. On May 1, Pane sells $30,000 of stained windows with terms 2/10, n/30. The cost of the inventory equals $19,000 and the company uses a perpetual inventory system. Pane records the total invoice price at the time of sale (i.e., Pane uses the gross method to record the sale). On May 8, Pane made collections on sales originally billed for $14,000, and on May 31, Pane collected on additional sales originally billed for $16,000.

7. On May 20, Pane determined that it will not collect on a prior-year credit sale of $480,000 due to the customers recent bankruptcy proceedings. Pane writes off the account. Pane uses the allowance method for receivables, the percentage of credit sales method to determine uncollectible accounts, and has a perpetual inventory system.

B. Depreciation is computed using the double-declining balance method and the nearest whole month convention. Amortization is computed using the straight-line method and the whole-year convention.

C. Income tax rate is 30%.

D. All purchases and expenses are on account unless otherwise indicated.

F. All of the property, plant and equipment on the balance sheet as of 1/1/2018 is fully depreciated. Therefore, the only depreciation for the current year will relate to property, plant and equipment that Pane has purchased during the current year.

G. Pane does not have a Sales Discount account. Therefore, any entries that you want to make to Sales Discount should be made directly to Sales and Service Revenue.

H. Treasury Stock is accounted for using the Cost Method.