Intercompany Service Transactions PF Consolidated Inc. provided consulting services to its subsidiary, Sessions Athletic Gear, during 2020. PF Consolidated charged $5,000,000 of travel, salary, overhead and supplies costs to its administrative expenses account, and charged Sessions $8,000,000 for the services. By December 31, 2020, the end of PF's accounting year, Sessions has paid all but $100,000 of the balance due to PF. Sessions categorizes the services as administrative. Required a. What balances appear in the December 31, 2020, trial balances of PF and Sessions with respect to these intercompany services? What balances should appear on the consolidated financial statements? Use negative signs with answers to indicate a Credit (Cr) balance. Enter answers using all zeros (do not abbreviate answers to millions or thousands). Consolidated Balances Dr (Cr) PF Consolidated Inc. Sessions Athletic Gear Dr (Cr) Dr (Cr) Accounts receivable 100,000 100,000 x 100,000 x Accounts payable 100,000 x (100,000) 100,000 x Consulting revenue (800,000) x 800,000 * 800,000 * Administrative expenses 500,000 x 800,000 x 500,000 x b. Prepare the working paper eliminating entries needed for these intercompany services at December 31, 2020. Enter answers using all zeros (do not abbreviate answers to millions or thousands). Description Accounts payable Accounts receivable To eliminate intercompany receivables/payables. Consulting revenue Administrative expenses To eliminate intercompany revenues/expenses. Debit Credit 100,000 0 0 100,000 800,000 x 0 0 800,000 x