LO1 E6.7 Intercompany Financing Transactions Sessions Athletic Gear borrowed $5,000,000 from its par- ent, PF Consolidated Inc., at an interest rate of 5%. The loan was made on September 30, 2019, with interest due semiannually on March 31 and September 30 of each year, and principal due in 2023. PF's accounting year ends on December 31. You are doing the consolidation working paper at December 31, 2020. The loan is still outstanding, and Sessions has made interest payments as required. Required a. What balances appear in the December 31, 2020, trial balances of PF and Sessions with respect to this intercompany loan? What balances should appear on the consolidated financial statements ? b. Prepare the working paper eliminating entries needed for this intercompany loan at December 31, 2020. E6.8 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 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? b. Prepare the working paper eliminating entries needed for these intercompany services at December 31, 2020. LO 1 a