Question

Prepare Journal Entries for Transactions

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 Shipping Point.   
           Inventory Cost       $95,000           
           Shipping Cost       $400   

B   January 1: Pane rents some of their extra warehouse space to a tenant for $500/mo. At the beginning of the month, the tenant pays for 1 year of rent. The tenant first occupied the property on January 1 of the current year.
           Total Rent Paid       $6,000           
                              
C   January 1: Pane purchased a one year insurance policy with coverage beginning on April 1.   
           Insurance Policy       $34,000           
                              
D   January 9: Pane pays for the inventory purchased in transaction A.   
                              
E   February 1: Pane makes sales of on account.
           Sales on account       $500,000           
           Cost of Goods Sold       $20,000           

Answer 1

Transaction	Date	General Journal	Debit	Credit
A.	January 1	Inventory	$95,000
		Accounts payable		$95,000
		( To record inventory purchase)
B	January 1	Cash	$6,000
		Deferred revenue		$6,000
		( To record rent revenue)
C	January 1	Prepaid insurance	$34,000
		Cash		$34,000
		( To record insurance expense)
D	January 9	Accounts payable	$95,000
		Cash		$95,000
		( To record payment of accounts payable)
E	February 1	Accounts receivable	$500,000
		Sales		$500,000
		( To record sales on account)
	February 1	Cost of goods sold	$20,000
		Inventory		$20,000
		( To record cost of goods sold)

Kindly comment if you need further assistance. Thanks