journal entries, and example how you got it.

1. On January 5, Pane buys land and a building for one lump-sum of cash. Contract price: $590,000 Fair Value: Land $400,000 Fair Value: Building $200,000 Useful Life of Building (years) 2. On January 7, Pane purchases a machine to make stained glass windows. Pane pays cash for the machine. The machine has no residual value. 20 Contract Price: Transportation Costs: Installation Costs: Sales Tax on Contract Price: Useful Life of Machine (years) $105,500 $7,200 $4,956 10% 6 3. On January 15, the company pays off the previous year's payroll tax liabilities that are reflected in the January 1, 2018 trial balance (the trial balance is found on the "Information" tab). The payroll tax liability accounts are 6060, 6070, 6080 and 6090. 4. On February 9, Pane purchases $32,000,000 of inventory on account. Note that the company employs a perpetual inventory system. 5. On April 1, Pane makes a credit sale to Gane Co. and requires Gane to sign a $50,000, 2- year (24-month) note. Interest of 12% is to be assessed in addition to the face value of the note and collected at maturity. The cost of the inventory sold totals $38,000. 6. On May 1, Pane sells $30,000 of stained windows with terms 2/10, n/30. The cost of the inventory equals $19,000 and the company uses a perpetual inventory system. Pane records the total invoice price at the time of sale (i.e., Pane uses the gross method to record the sale). On May 8, Pane made collections on sales originally billed for $14,000, and on May 31, Pane collected on additional sales originally billed for $16,000. 7. On May 20, Pane determined that it will not collect on a prior-year credit sale of $480,000 due to the customer's recent bankruptcy proceedings. Pane writes off the account EXHIBIT 2 (continued) 8. On July 2, Pane pays cash for a patent that will allow it to produce a revolutionary new window for boats and other marine vehicles called "T-Panes". Cost of Patent $120,000 Estimated Economic Life (in years) 12 0 9. On December 10, Pane records the collection of 55,000,000 from customers as settlement of accounts receivable. 10. On December 16, Pane records the payment of S26,500,000 to suppliers as settlement of accounts payable 11. On December 31, Pane evaluates its sales information for the year. The following information relates to sales transactions not previously recorded. Record the sales (as one transaction) and note that the company employs a perpetual inventory system. $75,000,00 Sales Percentage of Sales on Credit 95% $37,000,00 Inventory Sold 0 12. On December 31, Pane evaluates the company's research and development (R&D) activities conducted throughout the year to help develop a new bulletproof glass for the Department of Defense Management determines that the company incurred the following costs related to the R&D activities Material used from inventory $95,000 S151,00 Wages and Salaries (paid in cash) 0 Machine purchased for cash for the R&D project with a useful life of 1 year and no alternative future uses $47.000 EXHIBIT 3 Pane in the Glass, Inc. Additional Information Available at Year-End On December 31, 2018: 13. Pane accrues interest on the note signed by Gane on April 1 (see Transaction #5). 14. Pane believes that % of its net credit sales will be uncollectible for the year. Net credit sales amounted to $71,480,000 15. Pane uses the first-in, first-out (FIFO) cost flow assumption. At year-end, the net realizable value of Pane's inventory was $28,000 below its original cost. Pane uses the direct method to write down inventory 16. Pane discovers that payment of $100,000 for the current year's rent (Jan 1 - Dec 31, 2018) was mistakenly recorded as rent expense when the company prepaid it last December, 2017. It should have been recorded as Prepaid Rent. Make the appropriate (a) journal entries to correct the error as of the beginning of the current year and (b) the adjusting entry to recognize the expense for the current year. Note that the adjustment to the beginning Retained Earnings balance should be net of tax. Hint: Credit the income Tax Payable account for the $30,000 tax effect. 17. Pane records depreciation and amortization expense. Use the nearest whole month convention, and the double declining balance method for depreciation and the whole-year convention and the straight-line method for amortization. Note that all assets on the books at the beginning of the year are fully depreciated. Use the accumulated depreciation and accumulated amortization accounts. (See Transaction #1, #2, and #8). 18. Pane purchased a subsidiary many years ago that produces various specialty medical glass products and named it PaneMeds, which invested heavily in an artificial jaw replacement, GlassJaw. Due to inferior durability, the market reacted negatively to the product and Pane decided to review the PaneMeds operating segment for impairment to goodwill $5,700,00 Book value Goodwill included in the book value) $530,000 $4,515,00 Fair value 0 0