Question

Project Instructions Please read the following instructions and review the table below carefully. Then, enter answers for journal items [A] to [V] in the next item in this lesson, called Project 1 Part 1 Journal Entries for Accrual Accounting. You may keep these instructions open in a separate browser or download the instructions as a PDF, and open it as you work through the exercise. 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 1.1 Topic: Accrual Accounting On 1/1/20X1, Illini prepays 2-year $10,000 insurance premiums for certain assets: $4,000 for 20X1 and $6,000 for 20X2. Illini pays $30,000 utility fees and $20,000 rentals each year for 20X1 and 20X2. In 20X1, Illini incurs cash-based compensation expense of $100,000, for which $10,000 will be paid in Jan, 20X2 (others are paid in 20X1). In 20X2, Illini incurs cash-based compensation expense of $110,000. The actual total cash compensation payment made in 20X2 is $100,000. On 12/31/20X2, Illini receives $50,000 from a customer for a service it will provide in 20X3. Project 1.1 Balance Sheet Date Account Name Debit Credit 1/1/20X1 Prepaid insurance [A] Cash [B] 12/31/20X1 Insurance expense [C] Prepaid insurance [D] 12/31/20X1 Utility expense [E] Rent expense [F] Cash [G] 12/31/20X1 Compensation expense [H] Cash [I] Wage payable [J] Jan, 20X2 Wage payable [K] Cash [L] 12/31/20X2 Insurance expense [M] Prepaid insurance [N] 12/31/20X2 Utility expense [O] Rent expense [P] Cash [Q] 12/31/20X2 Compensation expense [R] Cash [S] Wage payable [T] 12/31/20X2 Cash [U] Unearned revenue [V] Enter the correct journal entry for part [B]. [C]. [D]. [E]. [F]. [G]. [H]. [I]. [J]. [K]. [L]. [M]. [N]. [O]. [P].[Q].[R].[S].[T]. [U]. [V]

Answer 1