Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need to know how to do the journal entry and t accounts. I also have to make an income statement, statement of retained earnings,

I need to know how to do the journal entry and t accounts. I also have to make an income statement, statement of retained earnings, and make a balance sheet please. image text in transcribed
It cut off byt point F says "Make balance sheet"
On January 1tt2022, Mr. Pane starts Pane in the Glass Window Company by issuing 1,000 shares of $6 par common stock for $100 per share. The same day, the company purchased a delivery truck in exchange for signing a 5-year, 6% annual interest rate note payable with a face value of $40000. Interest is payable on the last day of every calendar year. The truck is valued at $40000 and has an estimated useful life of 10 years. On January 2nd the company purchased 500 windows from the manufacturer for $215 each and paid in cash. On January 3ns the window manufacturer contacted Pane in the Glass and offered an additional 70 windows for $180 each. During 2022, the company sold 310 windows on account for $360 each. The company uses UFO inventory valuation and warranties its windows for 2 years. It expects that 10% of the windows will have a problem and that on average each window would cost $90 to fix. The company records bad debt expense equal to 5% of credit sales. The company collects $89280 cash from the credit sales. The company also learns that Big Al who purchased 2 of the windows has declared bankruptcy and will not pay for his windows so Mr. Pane decides to write off the accounts receivable related to these two windows. On November 1, Lovers' Lanes Bowling Alley requests that 5 of their new windows be repaired. The repairs were covered under warranty and the repairs cost $75 for each window. On the last day of the year, Pane in the Glass pays interest on the note payable, and records depreciation expense using double declining balance depreciation. Requirements a. Make journal entries and adjusting entries b. Post journal entries to T accounts c. Make adjusted trial balance (test if it balances) d. Make income statement e. Statement of retained eamings

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

For Mowen/hansen/heitgers Cornerstones Of Managerial Accounting, 6th Edition, [instant Access]

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

6th Edition

1305280768, 9781305280762

More Books

Students also viewed these Accounting questions

Question

Under what circumstances do your customers write complaint letters?

Answered: 1 week ago