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Student Info

	Student Name
	Class Time

Company Info

Instructions
Pane in the Glass Company (Pane) is a glass manufacturer based out of California. They produce
a number of glass products including car windows and windshields, windows for houses,
stained glass windows, and a number of other specialty products. The following information
pertains to the fiscal year ending December 31, 2018:
At the beginning of the 2018, the company's 1/1/2018 trial balance was as follows:
		Number	Title	Debit	Credit
		100	Cash	$ 450,000,000		$450,000,000
		110	Accounts Receivable	$ 33,000,000		$33,000,000
		115	Allowance For Bad Debts		$ 1,240,000	($1,240,000)
		120	Inventory	$ 12,345,000		$12,345,000
		135	Accumulated Depreciation		$ 72,422,000	($72,422,000)
		140	Equipment	$ 105,000,000
		160	Buildings	$ 1,000,000		$1,000,000
		170	Land	$ 2,567,000		$2,567,000
		180	Patents	$ 80,000		$80,000
		185	Accumulated Amortization		$ 50,000	($50,000)
		200	Accounts Payable		$ 70,050,000	($70,050,000)
		300	Common Stock		$ 120,000,000	($120,000,000)
		310	Additional Paid In Capital		$ 267,000,000	($267,000,000)
		340	Retained Earnngs		$ 73,230,000	($73,230,000)
				$ 603,992,000	$ 603,992,000		- 0
Other assumptions for the year
	a.	Depreciation and amortization are computed using the straight line method.
	b.	Pane uses a perpetual system to track their inventory.
	c.	Pane uses the percentage of receivables method to estimate their bad debt expense
	d.	Pane has a year end of December 31, 2018
As the accountant for Pane in the Glass company, you have been asked to do the following:
	1. Evaluate the following information and transactions listed on the "Transactions" tab and
	make the necessary journal entries in the "Journal Entries" tab. You should only use
	the accounts listed on the "Chart of Accounts" tab in your journal entries.
	2. Post the journal entries into the appropriate t-accounts in the "T-Accounts" tab
	3. Prepare the adjusting journal entries in the "Journal Entries" tab
	4. Post the adjusting journal entries to the appropriate t-accounts in the "T-Accounts" tab
	5. Prepare the income statement using the "Adjusted Trial Balance" tab
	6. Prepare your closing journal entries in the "Journal Entries- Closing" tab
	7. Post the closing entries into the appropriate accounts on the "T-Accounts- Closing" tab
	8. Use the Post Closing trial balance to prepare the Balance Sheet

Helpful Hints: - The tabs are color-coded based on the task. Informational tabs Transactions and adjusting entries tabs Closing entries tabs Financial statement tabs - Your numbers may be off a few dollars relative to the check figures because of rounding. Don't worry about it as long as your numbers are within $5 of the check figures.

Chart of Accounts

Chart of Accounts
Account Number	Account Title	DO NOT EDIT THIS TAB
100	Cash
110	Accounts Receivable
115	Allowance For Bad Debts
120	Inventory
130	Notes Receivable
135	Accumulated Depreciation
140	Equipment
160	Buildings
170	Land
180	Patents
185	Accumulated Amortization
190	Interest Receivable
195	Prepaid Insurance Expense
200	Accounts Payable
205	Unearned Rent Revenue
210	Salaries Payable
230	Dividends Payable
300	Common Stock
310	Additional Paid in Capital
340	Retained Earnings
400	Sales Revenue
405	Rent Revenue
410	Interest Revenue
415	Loss on Sale of Equipment
500	Cost of Goods Sold
510	Depreciation Expense
518	Amortization Expense
520	Bad Debt Expense
540	Salaries Expense
560	Insurance Expense
570	Interest Expense
599	Income Tax Expense
600	Dividends

Transactions

Transaction No.	Transaction			Chapter
A	January 1: Pane purchases inventory on account to make stained glass windows. The contract has terms of 2/10, n/30. The goods were purchased under the shipping terms of FOB destination.			6
		Inventory Purchased	$9,750,000
		Shipping Cost	$5,050
B	January 3: Pane receives rent for the 2 years from a tenant who rents one of their empty warehouses.			4
		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 on account with coverage beginning on March 1.			4
		Insurance Policy	$20,000
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.			6
		Inventory Purchased	$12,325,000
		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.			6
		Cash Sales	5,367,000
		Sales on account	40,054,000
		Cost of Goods Sold	13,250,000
G	June 1: Pane pays for the inventory purchased in transaction E.			6
H	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".			9
		Cost of Patent	$90,000
		Remaining legal life of patent (in years)	9
I	July 28: Pane issued shares of common stock			11
		Number of shares	5,230
		Par Value	$2
		Price Per Share	$124
J	August 6: Pane purchases land with cash. At the time of purchase, Pane also had to pay for survey fees related to the land.			9
		Cost of Land	$124,000
		Survey Fees	$600
K	November 1: Pane lends one of their employees $200,000 in exchange for a note receivable. The employee is required to pay Pane back for the principal and interest on September 1, 2019.			8
		Principal	$200,000
		Interest Rate	9%
		Maturity Date	9/1/19
L	November 15: Pane sales additional goods to customers on account.			7,8
		Sales on account	$20,000,000
		Cost of Goods Sold	$6,350,000
M	December 1: Pane puchases a piece of machinery with cash that will assist in making "T-Panes"			8
		Cost of Machinery	$890,000
		Installation Fees	$4,250
		Transportation Costs	$1,030
N	December 10: Pane collects a portion of their accounts receivable			8
		Amount collected	$43,758,000
O	December 18: Pane sold a piece of their equipment for $10,000 in exchange for cash.			9
		Sale Price	$10,000
		Equipment Historical Cost	$55,000
		Accumulated Depreciation for this equipment	$38,000
P	December 31: Pane paid the IRS their 2018 income tax.			4
		Income Tax Paid	$2,000,000
Q	The payroll information for the year is shown below. All salaries and wages were previously paid for in cash, however this activity has not been recorded on Pane's books.			9
		Number of Employees	200
		Employee payment (daily)	$175
		Days worked in the current year	250
S	On December 31, Pane was notified that their one of their customers filed bankruptcy and would not be able to pay off their $3,000 account receivable.			8
T	On December 31, Pane paid cash dividends of $8,000 to its shareholders.			11
STOP: Post each of the preceding journal entries to the appropriate T-Accounts before preparing the adjusting journal entries.
Year-End Adjusting Entries:
1	Recognize the revenue earned from the rent paid in transaction B.			4
2	Recognize the expiration of the prepaid insurance policy, purchased in transaction D.			4
3	Recognize the interest earned on the note receivable issued in transaction K			4,8
4	Record the bad debt expense for the year, assuming uses 3% of accounts receivable to estimate their uncollectible accounts.			8
5	Depreciation Expense for the year is 2,556,000			9
6	Amortization Expense for the year is 3,000			9
	Post each of the adjusting journal entries to the appropriate T-Accounts- DO NOT prepare closing journal entries yet

Instructions: 1. Prepare the journal entries for transactions A-T below and record them on the "Journal Entries" tab. 2. Once you have created the journal entries, post them to the "T-Accounts" tab. 3. Prepare journal entries for adjusting journal entries 1-6. 4. Post the adjusting entries to the correct T-Accounts in the "T-Accounts" tab.

Journal Entries

			Journal Entries
Transaction No.			Account Name	Debit	Credit
A	Dr.
		Cr.
B	Dr.
		Cr.
C	Dr.
		Cr.
		Cr.
D	Dr.
		Cr.
E	Dr.
		Cr.
F	Dr.
		Cr.
	Dr.
	Dr.
		Cr.
G	Dr.
		Cr.
H	Dr.
		Cr.
I	Dr.
		Cr.
		Cr.
J	Dr.
		Cr.
K	Dr.
		Cr.
L	Dr.
		Cr.
	Dr.
		Cr.
M	Dr.
		Cr.
N	Dr.
		Cr.
O	Dr.
	Dr.
	Dr.
		Cr.
P	Dr.
		Cr.
Q	Dr.
		Cr.
S	Dr.
		Cr.
T	Dr.
		Cr.
Adjusting Entries
AJE 1	Dr.
		Cr.
AJE 2	Dr.
		Cr.
AJE 3	Dr.
		Cr.
AJE 4	Dr.
		Cr.
AJE 5	Dr.
		Cr.
AJE 6	Dr.
		Cr.
						Difference
			Check figures: Total debits should equal total credits.	- 0	- 0	- 0

Instructions: Prepare the journal entries for each transaction listed on the "Transactions" tab. To the left, you will find yellow cells highlighted for each debit and credit account and amount needed for each transaction. DO NOT add additional rows to the journal entries below. Only type in the boxes that are highlighted yellow. Reminder: Record only the transactions and adjusting entries, not the closing entries, in this tab.

T-Accounts

	General Ledger
	100 - Cash				110 - Accounts Receivable				115- Allowance For Bad Debts
1/1/18	450,000,000			1/1/18	33,000,000					1,240,000	1/1/18
	450,000,000	- 0			33,000,000	- 0			- 0	1,240,000
	120 - Inventory				130 - Notes Receivable				135 - Accumulated Depreciation
1/1/18	12,345,000			1/1/18	- 0					72,422,000	1/1/18
	12,345,000				- 0					72,422,000
	140 - Equipment				160 - Buildings				170 - Land
1/1/18	105,000,000			1/1/18	1,000,000			1/1/18	2,567,000
	105,000,000				1,000,000				2,567,000
	180 - Patents				185 - Accumulated Amortization				190 - Interest Receivable
1/1/18	80,000					50,000	1/1/18	1/1/18	- 0
	80,000					50,000			- 0
	195 - Prepaid Insurance Expense				200 - Accounts Payable				205 - Unearned Rent Revenue
1/1/18	- 0					70,050,000	1/1/18			- 0	1/1/18
	- 0					70,050,000				- 0
	300 - Common Stock				310 - APIC				340 - Retained Earnings
		120,000,000	1/1/18			267,000,000	1/1/18			73,230,000	1/1/18
		120,000,000				267,000,000				73,230,000
	400 - Sales Revenue				410 - Interest Revenue				405 - Rent Revenue
		- 0	1/1/18			- 0	1/1/18			- 0
		- 0				- 0				- 0
	600 - Dividends				415 -Loss on Sale of Equipment				500 - Cost of Goods Sold
1/1/18				1/1/18			1/1/18	1/1/18
	- 0				- 0				- 0
	510 - Depreciation Expense				518 - Amortization Expense				520 - Bad Debt Expense
1/1/18				1/1/18				1/1/18
	- 0				- 0				- 0
	560 - Insurance Expense				599 - Income Tax Expense				540 - Salaries & Wage Expense
1/1/18				1/1/18				1/1/18
	- 0				- 0				- 0

Instructions: The beginning account balances have been filled in for you. Post only the transactions and adjusting entries, not the closing entries, in this tab. DO NOT delete any cells in this tab.

Adjusted Trial Balance

Trial Balance and Adjustments
Accounts		General Ledger			DO NOT EDIT THIS TAB
Number	Title	Debit	Credit	Net
100	Cash	450,000,000	- 0	ERROR:#REF!
110	Accounts Receivable	33,000,000	- 0	ERROR:#REF!
115	Allowance for Bad Debts		1,240,000
120	Inventory	12,345,000	- 0	ERROR:#REF!
130	Notes Receivable	- 0	- 0	ERROR:#REF!
135	Accumulated Depreciation	- 0	72,422,000	ERROR:#REF!
140	Equipment	105,000,000	- 0	ERROR:#REF!
160	Buildings	1,000,000	- 0	ERROR:#REF!
170	Land	2,567,000	- 0	ERROR:#REF!
180	Patents	80,000	- 0	ERROR:#REF!
185	Accumulated Amortization	- 0	50,000	ERROR:#REF!
190	Interest Receivable	- 0	- 0	ERROR:#REF!
195	Prepaid Insurance Expense	- 0	- 0
200	Accounts Payable	- 0	70,050,000	ERROR:#REF!
205	Unearned Rent Revenue		- 0
300	Common Stock	- 0	120,000,000	ERROR:#REF!
305	APIC - Common Stock	- 0	267,000,000	ERROR:#REF!
340	Retained Earnings	- 0	73,230,000	ERROR:#REF!
400	Sales Revenue	- 0	- 0	ERROR:#REF!
410	Interest Revenue	- 0	- 0	ERROR:#REF!
405	Rent Revenue		- 0
415	Loss on Sale of Equipment	- 0	- 0
500	Cost of Goods Sold	- 0	- 0	ERROR:#REF!
510	Depreciation Expense	- 0	- 0	ERROR:#REF!
518	Amortization Expense	- 0	- 0	ERROR:#REF!
520	Bad Debt Expense	- 0	- 0
540	Salaries Expense	- 0	- 0	ERROR:#REF!
560	Insurance Expense	- 0	- 0	ERROR:#REF!
599	Income Tax Expense	- 0	- 0	ERROR:#REF!
600	Dividends	- 0	- 0	ERROR:#REF!	Difference
	Total	603,992,000	603,992,000	ERROR:#REF!	- 0
					Remember: Total debits should eqal total credits, if these are not equal review your journal entries and t-accounts.

Instructions: Use the data provided to complete your income statement. Do not input data into this tab.

Journal Entries - Closing

			Journal Entries
			Account Name	DR	CR
C 1	Dr.
	Dr.
	Dr.
		Cr.
		Cr.
		Cr.
		Cr.				Remember: your debit or credit to retained earnings in this journal entry should equal your net income on the income statement.
		Cr.
		Cr.
		Cr.
		Cr.
		Cr.
			To close the income statement accounts
C 2	Dr.
		Cr.
			To close the Dividends account
						Difference
			Check figures: Total debits should equal total credits.	- 0	- 0	- 0

Instructions: Prepare the closing journal entries for Pane Company . Once you have recorded the journal entries, post them to the "T-Accounts - Closing" tab.

T-Accounts- Closing

General Ledger
340 - Retained Earnings		400 - Sales Revenue		410 - Interest Revenue
	73,230,000	- 0	- 0	- 0	- 0
	73,230,000		- 0		- 0
405 - Rent Revenue
- 0	- 0
	- 0
415 - Loss on Sale of Equipment		500 - Cost of Goods Sold		510 - Depreciation Expense
- 0	- 0	- 0	- 0	- 0	- 0
	- 0	- 0		- 0
518 - Amortization Expense		520 - Bad Debt Expense		540 - Salaries Expense
- 0	- 0	- 0	- 0	- 0	- 0
- 0		- 0		- 0
560 - Insurance Expense		599 - Income Tax Expense		600 - Dividends
- 0	- 0	- 0	- 0	- 0	- 0
- 0		- 0		- 0

Instructions: The balances in your "T-Accounts" tab have been automatically brought into your closing T-Accounts. Post the closing journal entries in your T-Accounts here to close your temporary accounts to zero and to calculate the ending balance in retained earnings

Post Closing Trial Balance

Trial Balance and Adjustments
Accounts		General Ledger
Number	Title	Debit	Credit	Net
100	Cash	450,000,000	- 0	ERROR:#REF!
110	Accounts Receivable	33,000,000	- 0	ERROR:#REF!
115	Allowance for Bad Debts	- 0	1,240,000
120	Inventory	12,345,000	- 0	ERROR:#REF!
130	Notes Receivable	- 0	- 0	ERROR:#REF!
135	Accumulated Depreciation	- 0	72,422,000	ERROR:#REF!
140	Equipment	105,000,000	- 0	ERROR:#REF!
160	Buildings	1,000,000	- 0	ERROR:#REF!
170	Land	2,567,000	- 0	ERROR:#REF!
180	Patents	80,000	- 0	ERROR:#REF!
185	Accumulated Amortization	- 0	50,000	ERROR:#REF!
190	Interest Receivable	- 0	- 0	ERROR:#REF!
195	Prepaid Insurance Expense	- 0	- 0
200	Accounts Payable	- 0	70,050,000	ERROR:#REF!
205	Unearned Rent Revenue		- 0
300	Common Stock	- 0	120,000,000	ERROR:#REF!
305	APIC - Common Stock	- 0	267,000,000	ERROR:#REF!
340	Retained Earnings	- 0	73,230,000	ERROR:#REF!
400	Sales Revenue	- 0	- 0	ERROR:#REF!
405	Rent Revenue	- 0	- 0
410	Interest Revenue	- 0	- 0	ERROR:#REF!
415	Loss on Sale of Equipment	- 0	- 0
500	Cost of Goods Sold	- 0	- 0	ERROR:#REF!
510	Depreciation Expense	- 0	- 0	ERROR:#REF!
518	Amortization Expense	- 0	- 0	ERROR:#REF!
520	Bad Debt Expense	- 0	- 0
540	Salaries Expense	- 0	- 0	ERROR:#REF!
560	Insurance Expense	- 0	- 0	ERROR:#REF!
599	Income Tax Expense	- 0	- 0	ERROR:#REF!
600	Dividends	- 0	- 0	ERROR:#REF!
		603,992,000	603,992,000	ERROR:#REF!	- 0

Instructions: Use the data provided to complete the your balance sheet. Do not input data into this tab.

Income Statement

Pane in the Glass Company
Income Statement
For Year Ended December 31, 2018
Sales Revenue
Cost of Goods Sold
	Gross Profit
Operating Expenses
		Total Operating Expenses
Operating Income
Other Items
Income Before Tax
Net Income

Note: Be sure to fill in all of the yellow cells for the financial statements. Use the amounts in the adjusted trial balance to create your income statement. The order of the accounts within each section does not matter.

Balance Sheet

Pane in the Glass Company

Balance Sheet

December 31, 2018

Assets

Current Assets

Less: Allowance for Bad Debts

Total Current Assets

Property and Equipment

Less: Accumulated Depreciation

Total Property and Equipment

Intangible Assets

Less: Accumulated Amortization

Total Intangible Assets

TOTAL ASSETS

Liabilities

Current Liabilities

Total Current Liabilities

Total Liabilities

Stockholder's Equity

Contributed Capital

Total Contributed Capital

Retained Earnings

Remember: Total Assets should equal Total Liabilities + Total Equity

Total Stockholder's Equity

TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY

Difference

- 0

Note: Be sure to fill in all of the yellow cells for the financial statements. Use the numbers from the POST closing trial balance for the values on your Balance Sheet. The order of the accounts within each section does not matter.