II! D2L Test 2 Bank, Tax and ap X Pearson Sign In Q Modify the Bank Optic X D2L Homepage - 23W --Or x PDF Assignnment #2-W202 X Dashboard x + File C:/Users/hanan/Downloads/Assignnment%20%232-W2023%20Final%20copy.pdf Draw -1C Mostly clear Read aloud + 2 of 5 D The bookkeeper for Papacowski Corp has prepared the following balance sheet as at December 31, 2023: Cash Accounts Receivable (net) Inventories Investments Land Building (net) License (net) Papacowski Corp Balance Sheet December 31, 2023 $ 198,000 55,600 65,000 70,000 200,000 450,000 20,000 $1,058,600 Current Liabilities $ 250,000 Long-term Liabilities Shareholders' Equity 510,000 298,600 $1.058.600 The following additional information is provided: 1. The cash balance includes: Petty cash fund T-bill Cash advance to employee, payable on demand Certificate of deposit Saving Account at TD Bank Money market fund Chequing account at the Bank of Montreal Bank overdraft at the Scotia Bank (no other accounts are held at Total 2. The allowance for doubtful accounts $9,200. $ 350 7,000 3,000 100,000 34,650 10,000 44,200 (1,200) $ 198,000 3. The net realizable value of the inventory that is included in the Balance Sheet is $95,000. Q Search sage > K 60 0 L 20 + 1 046 A ENG US 10:26 PM 2023-03-24 13 A D2L Homepage - 23W --Or x PDF Assignnment #2-W202 X Dashboard x + + 2 of 5 D D2L Test 2 Bank, Tax and ap X Pearson Sign In Q Modify the Bank Optic X File C:/Users/hanan/Downloads/Assignnment%20%232-W2023%20Final%20copy.pdf II! Draw 3. The net realizable value of the inventory that is included in the Balance Sheet is $95,000. The following items have not been recorded or included in inventory: Papcowski bought inventory for $5,000 on December 27th, the terms are FOB shipping and the inventory arrived on January 3rd. Papcowski sold inventory for $8,000 on December 28th, the terms are FOB destination and the customer received the inventory on January 4rd. The cost of the inventory sold was $2,400. Papcowski received inventory of $10,000 on consignment from Merrigold Inc. Read aloud -1C Mostly clear 20 K 60 + A 5 Long-term FV-OCI investment $8.000 carrving value (fair value $12.000 at December Q Search ENG sage US 10:26 PM 2023-03-24 14 4. The investments section includes the following: An interest bearing note receivable of $10,000 that was issued on October 1st, 2023 bearing interest at 6% and is due on October 1, 2024 D2L Test 2 Bank, Tax and ap X Pearson Sign In Q Modify the Bank Optic X D2L Homepage - 23W --Or x PDF Assignnment #2-W202 X Dashboard x + II! + 3 of 5 D File C:/Users/hanan/Downloads/Assignnment%20%232-W2023%20Final%20copy.pdf Draw 4. The investments section includes the following: An interest bearing note receivable of $10,000 that was issued on October 1st, 2023 bearing interest at 6% and is due on October 1, 2024 Read aloud -1C Mostly clear Long-term FV-OCI investment $8,000 carrying value (fair value $12,000 at December 31,2023). Management plans on holding on to these investments for a number of years. 60 K FV-NI Investment 1,000 common shares of Lindon Inc. purchased at $7.00 per share (fair value $10.50 per share at December 31, 2023). Papcowski expects to sell the shares as soon as the market price increases more next year. Purchased 30% of Maroon Company. Papcowski purchased the shares for $15 each. Maroon company has 10,000 shares issued and outstanding. During the year the company declared a dividend for $20,000 and the net income was $150,000. The fair value of the investment $17 per share. Only the purchase has been recorded. 5. The land balance includes: land used for operations and recorded at its cost of $120,000 (the appraisal value of the land in 2023 was $500,000). The company doesn't use the revaluation model. Land held for future use was purchased at $80,000. The fair value of this land on December 31st is $120,000. 6. The building originally cost $450,000 and it was purchased on January 1st, 2020 and has a useful life of 20 years and a residual value of 50,000. Depreciation has been calculated and properly recorded for each year except no depreciation has been recorded for 2023. Accumulated depreciation is $60,000. 7. The license originally cost $25,000 and is being amortized over 5 years on a straight-line basis. Amortization for 2023 has not been recorded. Q Search sage 20 0 + A ENG US 10:27 PM 2023-03-24 14 A II! D2L Test 2 Bank, Tax and ap X Pearson Sign In Q Modify the Bank Optic X D2L Homepage - 23W --Or x PDF Assignnment #2-W202 X Dashboard x + File C:/Users/hanan/Downloads/Assignnment%20%232-W2023%20Final%20copy.pdf Draw -1C Mostly clear Read aloud + +3 of 5 D Accumulated depreciation is $60,000. 7. The license originally cost $25,000 and is being amortized over 5 years on a straight-line basis. Amortization for 2023 has not been recorded. 8. Current liabilities include: Deferred revenue $40,000 Accounts payable $97,000 Wages payable $14,500 Notes payable 5 year 5% $98,500 (19,700 is due in 2024) 9. Long-term liabilities include: Bank loan (5%, due in 10 years) $200,000 Pension obligation $310,000 10. Shareholders Equity includes: Common shares $50,000 Retained earnings $230,600 Accumulated other comprehensive income $18,000 Q Search 8 sage 3 K 60 > 0 20 + A ENG US 10:27 PM 2023-03-24 14 0 D2L Test 2 Bank, Tax and ap X Pearson Sign In QModify the Bank Optic X D2L Homepage - 23W --O X PDF Assignnment #2-W202 Dashboard Q File C:/Users/hanan/Downloads/Assignnment%20%232-W2023%20Final%20copy.pdf Draw -1C Mostly clear Read aloud + 4 of 5 D Notes payable 5 year 5% $98,500 (19,700 is due in 2024) 9. Long-term liabilities include: Bank loan (5%, due in 10 years) $200,000 Pension obligation $310,000 10. Shareholders Equity includes: Common shares $50,000 Retained earnings $230,600 Accumulated other comprehensive income $18,000 Required: Part 1 (27 marks) The company is a Canadian public company. Prepare the Statement of Financial Position sheet at December 31, 2023 in good form. The categories are: Current Assets, Long-term Investments and Long-term Receivables, Property, Plant & Equipment and Intangible Assets, Current Liabilities, Long-term liabilities and Shareholders Equity. Part 2 (18 marks) Prepare any journal entries you made to reflect the additional information. Q Search 8 sage $6 ENG US 20 + 10:27 PM 2023-03-24 14