Instructions:

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

Once you have created the journal entries, post them to the $"$T$-$Accounts" tab.

Prepare journal entries for adjusting journal entries $1-6.$

Post the adjusting entries to the correct T$-$Accounts in the $"$T$-$Accounts" tab.

Transaction No$.$ Transaction

January $1$: Pane purchases inventory on account to make stained glass windows. The contract has terms of $\frac{2}{10},\frac{n}{30}.$ The goods

were purchased under the shipping terms of FOB destination.

Inventory Purchased

Shipping Cost

$$5,050$

B

January $3$: Pane receives rent for the $2$ years from a tenant who rents one of their empty warehouses.

Total Rent Paid

$$63,000$

C January $5$: Pane pays for the inventory purchased in transaction $A.$

$6$

D February $12$: Pane purchased a one year insurance policy with coverage beginning on March $1.$

Insurance Policy

E

March $1$: Pane purchases additional inventory on account to make stained glass windows. The goods were purchased under the

shipping terms of FOB shipping point.

Inventory Purchased

$$12,125,000$

$$9,000$

Shipping Cost

$$9,000$

F

May $31$: Pane sells window panes to customers. Some customers paid in cash, others purchased their goods on account. Pane uses

the perpetual method to track their inventory.

Cash Sales

Create journal entries for problems A$-$G