On January 1H,2022, Mr. Pane forms Pane in the Glass Window Company by issuing 1,500 shares of $4 par common stock for $90 per share. The same day, the company purchased a dellvery truck for $50,000 by signing a 5 -year, 6% annual interest rate note payable with a face value of $50,000. Interest is payable on the last day of every calendar year. The truck has an estimated useful life of 10 years and no salvage value. On January 2nd the company purchased 500 windows from the manufacturer for $220 each and paid in cash. On January 3rd the window manufacturer contacted Pane in the Glass and offered to sell an additional 65 windows for $180 each. Mr. Pane accepted the offer and paid cash for the additional windows. During 2022, the company sold 300 windows on account for $360 each. The company uses uFO inventory valuation and offers a 2-year warranty on all windows sold. 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 $86,400 cash from the credit sales. The company also learns that Big Al, who purchased two of the windows, has declared bankruptcy and will not pay for his windows. Mr. Pane decides to write off the accounts receivable related to these two windows. On November 11, Lovers' Lanes Bowling Alley requests that 9 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 the interest on the note payable, and records depreciation expense using straight-line depreciation. Requirements 1) Prepare journal entries and adjusting entries 2) Post the journal entries to T accounts 3) Prepare the adjusted trial balance (does it balance?) 4) Prepare the following financial statements: - Income statement - Statement of retained earnings - Balance sheet - Statement of cash flows (operating activities section only) 5) Use your completed financial statements to identify the values for each of the following items. Be sure to record your final answers on the Group Answer Sheet. 1. Net income 2. Gross margin 3. Cash 4. Total assets 5. Cash from operations On January 1H,2022, Mr. Pane forms Pane in the Glass Window Company by issuing 1,500 shares of $4 par common stock for $90 per share. The same day, the company purchased a dellvery truck for $50,000 by signing a 5 -year, 6% annual interest rate note payable with a face value of $50,000. Interest is payable on the last day of every calendar year. The truck has an estimated useful life of 10 years and no salvage value. On January 2nd the company purchased 500 windows from the manufacturer for $220 each and paid in cash. On January 3rd the window manufacturer contacted Pane in the Glass and offered to sell an additional 65 windows for $180 each. Mr. Pane accepted the offer and paid cash for the additional windows. During 2022, the company sold 300 windows on account for $360 each. The company uses uFO inventory valuation and offers a 2-year warranty on all windows sold. 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 $86,400 cash from the credit sales. The company also learns that Big Al, who purchased two of the windows, has declared bankruptcy and will not pay for his windows. Mr. Pane decides to write off the accounts receivable related to these two windows. On November 11, Lovers' Lanes Bowling Alley requests that 9 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 the interest on the note payable, and records depreciation expense using straight-line depreciation. Requirements 1) Prepare journal entries and adjusting entries 2) Post the journal entries to T accounts 3) Prepare the adjusted trial balance (does it balance?) 4) Prepare the following financial statements: - Income statement - Statement of retained earnings - Balance sheet - Statement of cash flows (operating activities section only) 5) Use your completed financial statements to identify the values for each of the following items. Be sure to record your final answers on the Group Answer Sheet. 1. Net income 2. Gross margin 3. Cash 4. Total assets 5. Cash from operations