I attempting to place a .jpg icon on top of a JPanel in order to represent a board piece on a board. I have a GUI folder with the .java files and another folder containing the .jpg files.
--Major Edit-- Example Code
When a square is clicked a white icon is meant to be placed then black etc etc. This is a very basic example of what im trying to achieve
import java.awt.Dimension;
import javax.swing.*;
import java.awt.*;
import java.awt.event.*;
public class gui extends JFrame implements MouseListener {
/**
 * 
 */
private static final long serialVersionUID = -973341728129968945L;
JLayeredPane layeredPane;
JPanel board;
JLabel piece;
int numSquares;
private boolean currentPlayer;
public gui(){
    Dimension boardSize = new Dimension(600, 600);
    numSquares = 6;
    currentPlayer = true;
    layeredPane = new JLayeredPane();
    getContentPane().add(layeredPane);
    layeredPane.setPreferredSize(boardSize);
    layeredPane.addMouseListener(this);
    board = new JPanel();
    layeredPane.add(board, JLayeredPane.DEFAULT_LAYER);
    board.setLayout( new GridLayout(numSquares, numSquares) );
    board.setPreferredSize( boardSize );
    board.setBounds(0, 0, boardSize.width, boardSize.height);
    for (int i = 0; i < (numSquares * numSquares); i++) {
        JPanel square = new JPanel( new BorderLayout() );
        square.setBorder(BorderFactory.createLineBorder(Color.black));
        square.setBackground(Color.green);
        board.add( square );
     }
}
public static void main(String[] args) {
        JFrame frame = new gui();
        frame.setDefaultCloseOperation(DISPOSE_ON_CLOSE );
        frame.pack();
        frame.setResizable(true);
        frame.setLocationRelativeTo( null );
        frame.setVisible(true);
     }
@Override
public void mouseClicked(MouseEvent e) {
    JPanel temp =  (JPanel)board.findComponentAt(e.getX(), e.getY());
    System.out.println(e.getX() + " " + e.getY());
    if( currentPlayer ){
        ImageIcon white = new ImageIcon("l/Images/white.jpg");
        piece = new JLabel(white);
        temp.add(piece);
    }
    else{   
        ImageIcon black = new ImageIcon( "/Images/black.jpg");
        piece = new JLabel(black);
        temp.add(piece);
    }
    currentPlayer = !currentPlayer;
}
@Override
public void mouseEntered(MouseEvent e) {
}
@Override
public void mouseExited(MouseEvent arg0) {
    // TODO Auto-generated method stub
}
@Override
public void mousePressed(MouseEvent arg0) {
    // TODO Auto-generated method stub
}
@Override
public void mouseReleased(MouseEvent e) {
}
}