Instructions:

Prepare the journal entries for transactions A$-$T below and record them on the "Journal Entries" tab.

Transaction No$.$ Transaction

D March $27$: Pane purchases inventory on account to make stained glass windows. The goods were purchased under the shipping terms of the FOB shipping point.

Inventory Purchased

Shipping Cost

$$21,125,000$

$$19,000$

H June $1$: Pane lends one of their employees $$150,000$ in exchange for a note receivable. The employee is required to pay Pane back for the principal and interest on June $1,2024.$

Principal

Interest Rate

Maturity Date

$$150,000$

$12\%$

$\frac{6}{1}\frac{?}{24}$

June $29$: Pane purchases additional inventory on account to make stained glass windows. The contract has terms of $\frac{2}{10}$ and $\frac{n}{30}.$ The goods were purchased under the shipping terms of FOB destination.

Inventory Purchased

Shipping Cost

$$7,950,000$

$$15,050$

J$.$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

$$180,000$

Remaining legal life of Patent $($in years$)$

$9$

K$.$July $6$: Pane pays for the inventory purchased in transaction I.

L$.$ November $15$: Pane sales additional goods to customers on account.

Sales on account

$$29,000,000$

Cost of goods sold

$$15,350,000$