- On January 18 2022 Pane In The Glass Window Company Issued 1100090 Shares Of 4 Common Stock Each Share Of Stock Sold 1 (104.5 KiB) Viewed 44 times
On January 18 2022, Pane in the Glass Window Company issued 1100090 shares of $4 common stock. Each share of stock sold for $9 per share. The same day the company issued at par, 13, $1,000, 5-year bonds with an annual interest rate of 12% per year with interest payable each year on December 31st. On January 2nd the company purchased 100 windows (inventory) for cash. Each window Cost $95. The next day Pane in the Glass purchased 60 additional windows at a $130 cash each. January 4th the company bought a delivery van for cash. The van cost $45000. Managers estimate that the van will have a 5-year useful life and a salvage value of $5000. The firm uses straight line depreciation. The company hired 1 employee. He will be paid $12,000 for the year on December 31", The company sells 80 windows on account for $200 each. The company estimates bad debt expense of 1% of credit sales. The company collect $13000 from accounts receivable. Make journal entries for the following transactions. 1. Issue common stock 2. Issue bonds 3. Purchase inventory for cash (Jan 2) 4. Purchase inventory for cash (Jan 3) 5. Purchas van for cash 6. Sales/Cost of goods sold (Sales on account, LIFO inventory method). 7. Bad debt expense (percentage of sales method). 8. Collect Accounts receivable. 9. Pay interest on the bond. 10. Pay wages (one year's wages all in one journal entry). 11. Depreciation Exp (straight line depreciation method). Make T accounts Make income statement Make Balance Sheet Calculate EPS Calculate Cash from Operations