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 20X1. 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 3.1 Balance Sheet

Illini Company, Inc.
Income Statement
For the Year Ended December 31, 20X1
Sales	$1,132,357
Cost of sales (inventory/equipment)	692,000
Gross profit	440,357
Operating expenses:
Insurance expense	4,000
Utility expense	30,000
Rent expense	20,000
Compensation expense	[A]
Bad debt expense	[B]
Depreciation expense	[C]
Maintenance expense	3,000
Warranty expense	21,000
Rental expense (lease)	[D]
Pension expense	[E]
Selling expense-Initial issuance cost	10,000
Total operating expenses	[F]
Operating income	[G]
Other income (expense):
Investment revenue	7,500
Interest revenue	9,636
Unrealized holding losses - NI	[H]
Interest expense	(22,142)
Net income	[I]
Basic EPS	[J]
Diluted EPS	[K]

1 point