Help adding image

I had someone write a complete application for me in Java and I am learning some of the basics for macking changes like adding labels, changing captions, etc. One thing I want to do it add an image to a Panel. My program shows how to add Buttons to the panel and I finally learned how to add a Label to it also although I have no idea how to change the font.

Does someone have an easy to follow example for adding an image including defining the variables for it? I would REALLY appreciate it! And when I create the Class file, is the image loaded in or do I just have to have it in the same path? It will be a BMP file and a very small one.

Thanks!