Please refer to the instructions and the table in this question. Enter the correct journal entry for part [A] in the following Balance Sheet and Income Statement for 20X2. Note that for the purpose of preparing the Balance Sheet at the end of each year:

• For investments, you need to classify whether they are current assets (i.e., short-term investment) or non-current assets (i.e., long-term investment);
• For bonds, you need to determine what portion of the bonds payable is current liability and what portion is non-current liability. Current portion of the bonds payable is the principal payment portion of the cash interest payments in the next year. Non-current portion is the remaining amount of the bonds payable; and
• For leases (as the lessee), you need to determine what portion of the lease obligation is current liability and what portion is non-current liability. Current portion of the lease obligation is the principal payment portion of the cash lease payment in the next year (i.e., the amortization amount of the lease obligation in the next year). Non-current portion is the remaining amount of the lease liability.

Project 3.2 Balance Sheet

Illini Company, Inc.
Income Statement
For the Year Ended December 31, 20X2
Sales	$1,200,000
Cost of sales (inventory/equipment)	820,000
Gross profit	380,000
Operating expenses:
Insurance expense	6,000
Utility expense	30,000
Rent expense	20,000
Compensation expense	110,000
Bad debt expense	6,350
Depreciation expense	38,090
Maintenance expense	1,000
Warranty expense	25,000
Rental expense (lease)	[A]
Pension expense	[B]
Impairment of goodwill	[C]
Total operating expenses	[D]
(Loss) on sale of PPE	[E]
Operating income	[F]
Other income (expense):
Interest revenue	[G]
Interest expense	[H]
Gain on early extinguishment of bonds	357
Gain on sale of investment	4,000
Net income	[I]
Basic EPS	[J]
Diluted EPS	[K]