Question

8. On July 2, Pane pays cash for a patent that will allow it to produce a revolutionary new window for boats and other marine vehicles called "T-Panes". Cost of Patent $120,000 Estimated Economic Life (in years) 12

9. On December 10, Pane records the collection of $55,000,000 from customers as settlement of accounts receivable.

10. On December 16, Pane records the payment of $26,500,000 to suppliers as settlement of accounts payable.

11. On December 31, Pane evaluates its sales information for the year. The following information relates to sales transactions not previously recorded. Record the sales (as one transaction) and note that the company employs a perpetual inventory system. Sales $75,000,000 Percentage of Sales on Credit 95% Inventory Sold $37,000,000

12. On December 31, Pane evaluates the company’s research and development (R&D) activities conducted throughout the year to help develop a new bullet proof glass for the Department of Defense. Management determines that the company incurred the following costs related to the R&D activities: Material used from inventory $95,000 Wages and Salaries (paid in cash) $151,000 Machine purchased for cash for the R&D project with a useful life of 1 year and no alternative future uses $47,000 EXHIBIT 3 Pane in the Glass, Inc. Additional Information Available at Year-End On December 31, 2018:

13. Pane accrues interest on the note signed by Gane on April 1 (see Transaction #5).

14. Pane believes that 1% of its net credit sales will be uncollectible for the year. Net credit sales amounted to $71,480,000.

Answer 1

Answer:

Transaction	Date	General Journal	Debit	Credit
8	Jul-02	Patent	$                     1,20,000
		Cash		$                     1,20,000
9	Dec-10	Cash	$               5,50,00,000
		Accounts Receivable		$               5,50,00,000
10	Dec-16	Accounts Payable	$               2,65,00,000
		Cash		$               2,65,00,000
11	Dec-31	Cash	$                   37,50,000
		Account Receivable	$               7,12,50,000
		Sales		$               7,50,00,000
		Cost of goods sold	$               3,70,00,000
		Inventory		$               3,70,00,000
12	Dec-31	Machinery	$                         47,000
		Salary expense	$                     1,51,000
		Cash		$                     1,98,000
		Research & Development	$                         95,000
		Inventory		$                         95,000
13		No Data
14		Bad Debt	$                     7,14,800
		Accounts Receivable		$                     7,14,800