Question
Enter answers for journal items ([A] to [K] for Part 1 The Balance Sheet of the Illini as of 12/31/20X0: Illini Company, Inc. Balance Sheet
Enter answers for journal items ([A] to [K] for Part 1
The Balance Sheet of the Illini as of 12/31/20X0:
Illini Company, Inc. | |||
Balance Sheet | |||
as of 12/31/20X0 | |||
Assets | |||
Current Assets: | |||
Cash | $1,500,000 | ||
Accounts receivable, net | 18,000 | ||
Inventory | 50,000 | ||
Total current assets | 1,568,000 | ||
Equipment | 90,000 | ||
Goodwill | 20,000 | ||
Total assets | $1,678,000 | ||
Liabilities and shareholders' equity | |||
Shareholders' equity: | |||
Common stock, 20,000 shares outstanding, $1 par | $20,000 | ||
Additional paid-in capital | 280,000 | ||
Retained earnings | 1,378,000 | ||
Total shareholders' equity | 1,678,000 | ||
Total liabilities and shareholders' equity | $1,678,000 |
- Note that all additional paid-in capital (APIC) sub accounts (e.g., APIC-options and APIC-treasury stock), if any, are tracked in the Additional paid-in capital account on the Balance Sheet.
Project 1.3 Topic: Investments Part 1
- On 1/1/20X1, Illini Company acquires $50,000 of 3% three-year bonds at the face amount and classifies the bonds acquired as available-for-sale (AFS) securities. The bonds pay interests annually on 12/31. On 12/31/20X1, the bonds have a fair value of $54,000. On 1/1/20X2, Illini sells the bonds for $52,000.
Project 1.3 Part 1 Balance Sheet
Date | Account Name | Debit | Credit | |
1/1/20X1 | Investment - AFS | [A] | ||
Cash | [B] | |||
12/31/20X1 | Fair value adjustment | [C] | ||
Unrealized gains/losses - OCI | [D] | |||
12/31/20X1 | Cash | [E] | ||
Investment revenue | [F] | |||
1/1/20X2 | Unrealized gains/losses - OCI | [G] | ||
Fair value adjustment | [H] | |||
1/1/20X2 | Cash | [I] | ||
Investment - AFS | [J] | |||
Gain | [K] |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started