HI ALL I was wondering if i could get some help on these problems for the most part i got it (i THINK) But it would be nice to have confirmation if Im right or wrong FYI the check figures before adjusting entries are 2,034,670 and after adjusting entries is 2,090,377 THANKS Questions A January 1 Pane purchases inventory on account to make stained glass windows The inventory is shipped the same day 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 B 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 18 months of rent The tenant first occupied the property on January 1 of the current year Total Rent Paid $9,000 C 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 E February 1 Pane makes sales of on account Sales on account $400,000 Cost of Goods Sold $20,000 F 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 G April 1 Pane pays for the inventory purchased in transaction F H May 15 Customers return $1,300 of merchandise and received a full cash refund The cost of this merchandise to Pane was $400 I 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 Cost of Patent $25,000 Remaining legal life of patent (in years) 20 J July 28 Pane issued shares of common stock Number of shares 400 Par Value $1 Price Per Share $25 K 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 Cash Sales 26,000 Sales on account 145,000 Cost of Goods Sold 9,870 L 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, 2020 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 $6,500 O 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 P December 10 Pane collects a portion of their accounts receivable Amount collected $38,000 Q December 18 Pane sold a piece of their equipment Sale Price $15,000 Equipment Historical Cost $60,000 Accumulated Depreciation for this equipment $51,000 R December 31 Pane paid the IRS their 2019 income tax Income Tax Paid $2,000 S On December 31, Pane paid cash dividends of $8,000 to its shareholders T 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 8 Daily wages per employee $160 Days worked in the current year 300 U 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 J Dr $ 10,000 Cash Cr Common Stock Cr Additional Paid in Capital $ 400 KK $ 9,600 K Dr $ 9,870 Cost of Goods sold Cr inventory $ 9,870 Dr Dr Cash Accounts Receivable Cr Service Revenue $ $ 26,000 145,000 $ 171,000 L Dr $ 347,300 Land Cr Cash $ 347,300 M Dr $ 10,000 Notes Receivable Cr Cash $ 10,000 N Dr $ 75,000 Accounts Receivable Cr Servce revenue $ 75,000 Dr $ 6,500 Cost of Goods sold Cr inventory $ 6,500 $ 201,500 O Dr Equiptment Cr Cash $ 201,500 P Dr $ 38,000 Cash Cr Accounts Receivable $ 38,000 $ $ 34,000 C Dr Prepaid Insurance Cr Cash $ 34,000 D Dr $ 95,400 Accounts Payable Cr Cash Cr inventory $ $ 93,500 1,900 E Dr $ $ 400,000 Accounts Receivable Cr sales $ 400,000 Dr $ 20,000 Cost of goods sold Cr inventory $ 20,000 F Dr $ 12,000 Inventory Cr Accounts Payable $ 12,000 G Dr $ 12,000 Accounts Payable Cr Cash $ 12,000 H Dr $ 1,300 Sales Returns and Allowances Cr Cash $ 1,300 Dr $ 400 Inventory Cr Cost Of Goods Sold $ 400 I Dr $ 1,250 Amortization Expense Cr Accumulated Amortization $ 1,250 O Dr $ 201,500 Equiptment Cr Cash $ 201,500 P Dr $ 38,000 Cash Cr Accounts Receivable $ 38,000 Q Dr Dr $ $ 15,000 51,000 Cash Accumulated Depreciation Cr Equipment Cr Gain on sale $ $ 60,000 6,000 R Dr $ 2,000 Income Tax Expense Cr Cash $ 2,000 S Dr $ 8,000 Dividends Cr Cash $ 8,000 T Dr $ 384,000 Wages expense Cr Cash $ 384,000 U Dr $ 1,000 Allowance for doubtful debt Cr Accounts Receivable $ 1,000 Totals $ 2,010,920 $ 2,010,920

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HI ALL I was wondering if i could get some help on these problems for the most part i got it (i THINK). But it

HI ALL I was wondering if i could get some help on these problems for the most part i got it (i THINK). But it would be nice to have confirmation if Im right or wrong........FYI the check figures before adjusting entries are 2,034,670. and after adjusting entries is 2,090,377. THANKS!!

Questions:

A	January 1: Pane purchases inventory on account to make stained glass windows. The inventory is shipped the same day. 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

B. 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 18 months of rent. The tenant first occupied the property on January 1 of the current year.

Total Rent Paid

$9,000

C. 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.

E	February 1: Pane makes sales of on account.

		Sales on account	$400,000
		Cost of Goods Sold	$20,000

F	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

G	April 1: Pane pays for the inventory purchased in transaction F.

H	May 15: Customers return $1,300 of merchandise and received a full cash refund. The cost of this merchandise to Pane was $400.


I	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".


		Cost of Patent	$25,000
		Remaining legal life of patent (in years)	20

J	July 28: Pane issued shares of common stock

		Number of shares	400
		Par Value	$1
		Price Per Share	$25

K	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.



		Cash Sales	26,000
		Sales on account	145,000
		Cost of Goods Sold	9,870

L	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, 2020.



		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	$6,500

O	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

P	December 10: Pane collects a portion of their accounts receivable

		Amount collected	$38,000

Q	December 18: Pane sold a piece of their equipment.

		Sale Price	$15,000
		Equipment Historical Cost	$60,000
		Accumulated Depreciation for this equipment	$51,000

R	December 31: Pane paid the IRS their 2019 income tax.

		Income Tax Paid	$2,000

S	On December 31, Pane paid cash dividends of $8,000 to its shareholders.

T	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	8
		Daily wages per employee	$160
		Days worked in the current year	300

U	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.

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J Dr. $ 10,000 Cash Cr. Common Stock Cr. Additional Paid in Capital $ 400 KK $ 9,600 K Dr. $ 9,870 Cost of Goods sold Cr. inventory $ 9,870 > Dr. Dr. Cash Accounts Receivable Cr. Service Revenue $ $ 26,000 145,000 $ 171,000 L Dr. $ 347,300 Land Cr. Cash $ 347,300 M Dr. $ 10,000 Notes Receivable Cr. Cash $ 10,000 N Dr. $ 75,000 Accounts Receivable Cr. Servce revenue $ 75,000 Dr. $ 6,500 Cost of Goods sold Cr. inventory $ 6,500 > $ 201,500 O Dr. Equiptment Cr. Cash $ 201,500 > P Dr. $ 38,000 Cash Cr. Accounts Receivable $ 38,000 $ $ 34,000 C Dr. Prepaid Insurance Cr. Cash $ 34,000 > D Dr. $ 95,400 Accounts Payable Cr. Cash Cr. inventory $ $ 93,500 1,900 E Dr. $ $ 400,000 Accounts Receivable Cr. sales $ 400,000 Dr. $ 20,000 Cost of goods sold Cr. inventory $ 20,000 F Dr. $ 12,000 Inventory Cr. Accounts Payable $ 12,000 G Dr. $ 12,000 Accounts Payable Cr. Cash $ 12,000 H Dr. $ 1,300 Sales Returns and Allowances Cr. Cash $ 1,300 Dr. $ 400 Inventory Cr. Cost Of Goods Sold $ 400 I Dr. $ 1,250 Amortization Expense Cr. Accumulated Amortization $ 1,250 O Dr. $ 201,500 Equiptment Cr. Cash $ 201,500 P Dr. $ 38,000 Cash Cr. Accounts Receivable $ 38,000 Q Dr. Dr. $ $ 15,000 51,000 Cash Accumulated Depreciation Cr. Equipment Cr. Gain on sale $ $ 60,000 6,000 R Dr. $ 2,000 Income Tax Expense Cr. Cash $ 2,000 S Dr. $ 8,000 Dividends Cr. Cash $ 8,000 T Dr. $ 384,000 Wages expense Cr. Cash $ 384,000 > U Dr. $ 1,000 Allowance for doubtful debt Cr. Accounts Receivable $ 1,000 Totals $ 2,010,920 $ 2,010,920