Adding JApplet into JFrame

I am trying to view a JApplet within a JFrame.

Class: Paint
public void paint(Graphics g) {
  g.drawString("hi", 50, 50);
}

public static void main(String args[]) {
  JFrame frame = new JFrame("test");
  frame.setDefaultCloseOperation(JFrame.EXIT_ON_CLOSE);
  frame.setJMenuBar(methodThatReturnsJMenuBar());

  JPanel panel = new JPanel(new BorderLayout());
  frame.add(panel);

  JApplet applet = new Paint();
  panel.add(applet, BorderLayout.CENTER);
  applet.init();
  frame.pack();

  frame.setVisible(true);
}

The applet shows up in the Window, but there is no background (it's transparent), and when I click on the Menu, the list is covered. How do I make it so that the Menu list isn't covered, and there is a background?

Edit: When I draw a white rectangle, it fixes the background problem, but the Menu list is still covered.