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Enter answers for journal items ([A] to [K] for Part 1

The Balance Sheet of the Illini as of 12/31/20X0:

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 1.3 Topic: Investments Part 1

• On 1/1/20X1, Illini Company acquires $50,000 of 3% three-year bonds at the face amount and classifies the bonds acquired as available-for-sale (AFS) securities. The bonds pay interests annually on 12/31. On 12/31/20X1, the bonds have a fair value of $54,000. On 1/1/20X2, Illini sells the bonds for $52,000.

Project 1.3 Part 1 Balance Sheet

Date	Account Name		Debit	Credit
1/1/20X1	Investment - AFS		[A]
		Cash		[B]
12/31/20X1	Fair value adjustment		[C]
		Unrealized gains/losses - OCI		[D]
12/31/20X1	Cash		[E]
		Investment revenue		[F]
1/1/20X2	Unrealized gains/losses - OCI		[G]
		Fair value adjustment		[H]
1/1/20X2	Cash		[I]
		Investment - AFS		[J]
		Gain		[K]

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