For all the following lease transactions, if Illini needs to depreciate the leased equipment, use "depreciation expense." If the lease classification is operating lease, use "rental expense" for all related expenses.

Illini leases equipment from Cubs Corporation under a four-year lease agreement on 1/1/20x1. The lease specifies annual payments of $36,000 on each 1/1 and beginning 1/1/20x1. The annual lease payment includes a yearly $1,000 maintenance fee paid to Cubs for providing relevant maintenance services on the equipment. Illini has the option to buy the equipment at the end of the lease term (i.e., 12/31/20x4) for $20,000 when the fair value of the equipment is expected to be $60,000. The expected useful life of the equipment is five years with no residual value. The implicit rate is 10%.

Please refer to the instructions and the table in this question. Enter the correct journal entry for part [A].

Project 2.2 Part 1 Journal Entries Date

Account Name (Debit)

Account Name (Credit)

Debit

Credit

1/1/20X1

ROU assets

[A]

Lease obligation

[B]

1/1/20X1

Lease obligation

[C]

Prepaid maintenance

[D]

Cash

[E]

12/31/20X1

Maintenance expense

[F]

Prepaid maintenance

[G]

12/31/20X1

Interest expense

[H]

Accrued interest

[I]

12/31/20X1

Depreciation expense

[J]

ROU assets

[K]

1/1/20X2

Lease obligation

[L]

Accrued interest

[M]

Prepaid maintenance

[N]

Cash

[O]

12/31/20X2

Maintenance expense

[P]

Prepaid maintenance

[Q]

12/31/20X2

Interest expense

[R]

Accrued interest

[S]

12/31/20X2

Depreciation expense

[T]

ROU assets

[U]

1 point Enter answer here 2. Question 2 Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [B].

1 point Enter answer here 3. Question 3 Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [C].

1 point Enter answer here 4. Question 4 Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [D].

1 point Enter answer here 5. Question 5 Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [E].

1 point Enter answer here 6. Question 6 Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [F].

1 point Enter answer here 7. Question 7 Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [G].

1 point Enter answer here 8. Question 8 Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [H].

1 point Enter answer here 9. Question 9 Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [I].

1 point Enter answer here 10. Question 10 Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [J].

1 point Enter answer here 11. Question 11 Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [K].

1 point Enter answer here 12. Question 12 Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [L].

1 point Enter answer here 13. Question 13 Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [M].

1 point Enter answer here 14. Question 14 Please refer to the instructions and the table in Question 1. You may also view it as

Answer rating: 100% (QA)

1 ROU assets 43200 Lease obligation 43200 2 Lease obligation 43200 3 Lea... View the full answer