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Can you do the year-end adjusting entries for the following: 1) Recognize rent revenue for the year. 2) Depreciation expense for the year is 2,556,000.
Can you do the year-end adjusting entries for the following:
1) Recognize rent revenue for the year.
2) Depreciation expense for the year is 2,556,000.
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:
Transaction No. Transaction A 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 shippling terms of FOB Destination. $7.750,000 Inventory Purchased $4,000 Shipping Cost January 5: Pane pays for the inventory purchased in transaction A. January 6: Pane's tenant pays for 3 years of rent. The tenant first occupled the property on January 1 of the current year. C $30,000 Total Rent Paid March 1: Pane purchases additional inventory on account to make stained glass windows. The goods were purchased under the shipping terms of FOB shipping point. The contract has the terms of 1/10, n/30. Inventory Purchased Shipping Cost $12,325,000 $9,000 March 12: Pane purchased a one year insurance policy with coverage beginning on April 1 $40,000 Insurance Policy June 1: Pane pays for the inventory purchased in transaction D. July 1: Pane pays cash for a patent that will allow them to produce a revolutionary new window for boats and other marine vehidles G called "T-Panes" Cost of Patent $100,000 Remaining legal life of patent (in years) 20 July 28: Pane issued shares of common stock HI Number of shares 6500 Par Value $1 $42 Price Per Share me customers paid in cash, others sed their goods on accou Pane uses thes July 31: Pane sells wi w panes to cu perpetual method to track their inventory. Cash Sales 5,367,000 Sales on account 40,054,000 Cost of Goods Sold 13,250,000 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 $300 Survey Fees 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 prindipal and interest on May 1, 2019 Prindpal $400,000 Interest Rate 7% 5/1/19 Maturity Date November 15: Pane sales additional goods to customers on account. Sales on account $20,000,000 Cost of Goods Sold $6,350,000 December 1: Pane puchases a plece of machinery with cash that will assist in making "T-Panes" Cost of Machinery $890,000 Installation Fees $500 $1,030 Transportation Costs N December 10: Pane collects a portion of their accounts receivable Amount collected $43,758,000 December 18: Pane sold a plece of their equipment C $15,000 Sale Price Equipment Historical Cost $60,000 Accumulated Depredation for this equipment $41,000 December 31: Pane palid the IRS their 2018 income tax. Income Tax Paid $2,000,000 On December 31, Pane paid cash dividends of $8,000 to its shareholders. 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 an Pane's books Number of Employees 125 Employee payment (daily) Days worked in the current year $200 300 On December 31, Pane was notified that their one of their customers filled bankruptcy and would not be able to pay off their $2,000 account receivableStep by Step Solution
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