Can someone help me do the year-end adjusting entries for the following:
1) Recognize rent revenue for the year.
2) Depreciation expense for the year is $10,000.
3) Recognize the expiration of the prepaid insurance policy.
4) Recognize the interest earned on the note receivable issued.
5) Record bad debt expense for the year, assuming uses 2% of accounts receivable to estimate their uncollectible accounts.
6) Amortization Expense for the year is 3,000.
Using this information:
Instructions: 1. Prepare the journal entries for transactions A-T below and record them on the "Journal Entries" tab. 2. Once you have created the journal entries, post them to the "T-Accounts" tab. 3. Prepare journal entries for adjusting journal entries 1-6. 4. Post the adjusting entries to the correct T-Accounts in the "T-Accounts" tab. Transaction No. Transaction Chapter 6 . January 1: Pane purchases inventory on account to make stained glass windows. The contract has terms of 2/10, n/30. The goods were purchased under the shipping terms of FOB Shipping Point. Inventory Cost $95,000 Shipping Cost $400 January 1: Pane rents some of their extra warehouse space to a tenant for $500/mo. At the beginning of the month, the tenant pays for 1 year of rent. The tenant first occupied the property on January 1 of the current year. Total Rent Paid $6,000 January 1: Pane purchased a one year insurance policy with coverage beginning on April 1. Insurance Policy $34,000 D January 9: Pane pays for the inventory purchased in transaction A. 6 February 1: Pane makes sales of on account. $500,000 Sales on account Cost of Goods Sold $20,000 March 1: Pane purchases additional inventory on account to make stained glass windows. The goods were purchased under the shipping terms of FOB destination. The contract has the terms of 1/10, n/30. Inventory Purchased $ 12,000 April 1: Pane pays for the inventory purchased in transaction E. May 15: Customers return $1,300 of merchandise and received a full cash refund. The cost of this merchandise to Pane was $400. July 1: Pane pays cash for a patent that will allow them to produce a revolutionary new window for boats and other marine vehicles called "T-Panes". 9 Cost of Patent $25,000 Remaining legal life of patent (in years) 20 July 28: Pane issued shares of common stock 11 Number of shares 400 Par Value $1 Price Per Share $25 July 31: Pane sells window panes to customers. Some customers paid in cash, others purchased their goods on account. Pane uses the perpetual method to track their inventory. 25,000 Cash Sales Sales on account Cost of Goods Sold 145,000 9,870 August 6: Pane purchases land with cash. At the time of purchase, Pane also had to pay for survey fees and costs to demolish a building on the land. Cost of Land $345,000 Demolish Building $2,000 Survey Fees $300 M November 1: Pane lends one of their employees cash in exchange for a note receivable. The employee is required to pay Pane back for the principal and interest on May 1, 2019. Principal $10,000 Interest Rate 7% Maturity Date 5/1/2019 N November 15: Pane sells additional goods to customers on account. Sales on account $75,000 Cost of Goods Sold $6,350 December 1: Pane purchases a piece of machinery with cash that will assist in making "T-Panes" Cost of Machinery $200,000 Installation Fees $500 Transportation Costs $1,000 December 10: Pane collects a portion of their accounts receivable Amount collected $38,000 December 18: Pane sold a piece of their equipment. Sale Price $15,000 Equipment Historical Cost $60,000 Accumulated Depreciation for this equipment $41,000 December 31: Pane paid the IRS their 2019 income tax. Income Tax Paid $2,000 On December 31, Pane paid cash dividends of $2,000 to its shareholders. 11 The payroll information for the year is shown below. All salaries and wages were previously paid for in cash, however this activity has not been recorded on Pane's books. Number of Employees $160 Daily wages per employee Days worked in the current year 300 On December 31, Pane was notified that one of their customers filed bankruptcy and would not be able to pay off their $1,000 account receivable
