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will you write out all the journal entries for this? thank you! Group 53 On January 1st,2022,Mr. Pane forms Pane in the Glass Window Company
will you write out all the journal entries for this? thank you!
Group 53 On January 1st,2022,Mr. Pane forms Pane in the Glass Window Company by issuing 1,500 shares of $5 par common stock for $100 per share. The same day, the company purchased a delivery truck for $60,000 by signing a 5 -year, 6% annual interest rate note payable with a face value of $60,000. Interest is payable on the last day of every calendar year. The truck has an estimated use 10 years and no salvage value. On January 2nd the company purchased 530 windows from the manucturer for $200 each and in cash. On January 3rd the window manufacturer contacted Pane in the Glass and offered to sell an additional 60 windows for $180 each. Mr. Pane accepted the offer and paid cash for the additional windows. During 2022, the company sold 320 windows on account for $360 each. The company uses LIFO 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 $92,160 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 1st, Lovers' Lanes Bowling Alley requests that 10 of their new windows be repaired. The epairs were covered under warranty and the repairs cost $75 for each window. n the last day of the year, Pane in the Glass pays the interest on the note payable, and records preciation expense using straight-line depreciation Step by Step Solution
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