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 and 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 3.3 Balance Sheet

Illini Company, Inc.
Balance Sheet
	12/31/20X1	12/31/20X2
Assets
Current Assets
Cash	$1,336,056	$1,922,356
Short-term investment	[A]	[B]
Accounts receivable, net of allowance	34,150	67,800
Interest Receivable	9,636	6,999
Prepaid insurance	6,000	0
Inventory	310,000	50,000
Total current assets	1,733,841	2,047,155
Long-term investment	[C]	[D]
PPE, net	142,300	57,500
ROU assets, net	137,076	101,345
Investment in lease	[E]	[F]
Brand asset	0	16,000
Goodwill	[G]	[H]
Total assets	[I]	[J]
Liabilities and shareholders' equity
Current liabilities:
Wage payable	[K]	[L]
Unearned revenue	0	50,000
Estimated warranty liability	11,000	6,000
Accrued interest	12,704	9,445
Current portion of long-term bonds	[M]	[N]
Current portion of lease obligation	[O]	[P]
Total current liabilities	66,786	121,609
Non-current portion of long-term bonds	[Q]	[R]
Non-current portion of lease obligation	[S]	[T]
Pension liability	2,000	9,800
Total liabilities	286,437	236,341
Shareholders' equity:
Common stock	[U]	[V]
Additional paid-in capital - common stock	280,000	316,600
Preferred stock	100,000	100,000
Treasury stock	[W]	[X]
Retained earnings	[Y]	[Z]
Accumulated other comprehensive income	[i]	[ii]
Total shareholders' equity	1,919,138	2,070,652
Total liabilities and shareholders' equity	$2,205,575	$2,306,992