Instructions for Project 2.2 Journal Entries
for Leases
Project Instructions
 There are three exercises in this Project 2.2; Journal Entries for Leases Part 1, Journal
Entries for Leases Part 2 and Journal Entries for Leases Part 3.
 Please read the following instructions and review the table carefully. Then, enter answers for
journal items ([A] to [U] for Part 1, [A] to [M] for Part 2 and [A] and [W] for Part 3) in the next
three items in this Lesson, called Project 2.2 Journal Entries for Leases Part 1, Project 2.2 Journal
Entries for Leases Part 2 and Project 2.2 Journal Entries for Leases Part 3.
 You may keep these instructions open in a separate browser or download the instructions,
and open it as you work through the exercise.
 For specific layout of the ledgers, please refer to the file below.
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
1