Intercompany Receivables and Payables

Polychromasia, Inc. had a number of receivables from subsidiaries at the balance sheet date,

as well as several payables to subsidiaries. Of its five subsidiaries, four are consolidated in the

financial statements (Green Company, Black Inc., White & Sons, and Silver Co.). Only the

Brown Company is not consolidated with Polychromasia and the other affiliates. The following

list of receivables and payables shows balances at 12/31/10.

Interest receivable from the Brown Company $ 50,000

Interest payable to Black Inc. 75,000

Intercompany payable to Silver Co. 105,000

Long-term advance to Green Company 150,000

Long-term payable to Silver Co. 450,000

Long-term receivable from Brown Company 500,000

Required:

A. Show the classification and amount(s) that should be reported in the consolidated

balance sheet of Polychromasia, Inc. and Subsidiaries at 12/31/10 as receivable from

subsidiaries.

B. Show the classification and amount(s) that should be reported in the consolidated balance

sheet of Polychromasia, Inc. and Subsidiaries at 12/31/10 as payable to subsidiaries.