Intercompany Financing Transactions Sessions Athletic Gear borrowed $7,500,000 from its parent, PF Consolidated Inc., at an interest rate of 5%. The loan was made on September 30, 2016, with interest due semiannually on March 31 and September 30 of each year, and principal due in 2020. PPs accounting year ends on December 31. You are doing the consolidation working paper at December 31, 2017. The loan is still outstanding, and Sessions has made interest payments as required a. What balances appear in the December 31, 2017, trial balances of PF and Sessions with respect to this intercompany loan? What balances should appea Remember to use negative signs with your credit balance answers in the Dr (Cr) columns. r on the consolidated financial statements? PF Consolidated Inc. Sessions Athletic Gear Consolidated Balances Dr (Cr) Dr (Cr) Dr (Cr) Debit Credit Loan receivable Interest receivable Interest payable Loan payable Interest revenue Interest expense b. Prepare the working paper eliminating entries needed for this intercompany loan at December 31, 2017. General Journal Description Credit Loan payable Loan receivable To eliminate intercompany payab le/receivable interest payable #v Interest receivable To eliminate intercompany loan principal. Interest revenue Interest expense