The bookkeeper for Grace Inc. prepared the following balance sheet at Dec $31,2023$

$7$ The tradename originally cost $$168,000$ and is being amortized over $6$ years on

a straight$-$line basis. Amortization for $2023$ had already been recorded.

Included in the current liabilities is: Accounts payable $$73,500,$ wages payable

$$238,000,$ Deferred Revenue $$168,000$ and Pension obligation $$570,500$

The following additional information is provided

The cash balance includes:

Petty cash

T$-$bill

Cash advance to employee, payable on demand

Savings account CIBC

Chequing account CIBC

Bank overdraft at TD bank

Short term paper maturity $2$ months

Allowance for doubtful account is

$$50,400$

$3$ The net realizable value of inventory that is included in the balance sheet is $$140,000$

Inventories do not include $$210,000$ of merchandise that was in transit at

December $31.$

Of this amount, $$140,000$ was bought from George Inc. with terms f$.$o$.$b$.$ shipp

point $($the net realizable value of this inventory was $$245,000)$

The remainder of inventory that cost $$70,000$ was shipped from Grace Inc. for

consignment. The net realizable value for this inventory is $$168,000.$

The investments section includes the following:

An interest bearing note receivable of $$8,000$ that was issued on June $1^{st},2023$

bearing interest at $6\%$ and is due on June $1,2024$

Long$-$term FV$-$OCl investment $$12,200$ carrying value $($fair value $$9,000$ at

December $31,2023).$ Management plans on holding on to these investments for a

number of years.

FV$-$NI Investment $1,000$ common shares of Landon Inc. purchased at $$91,00$

per share $($fair value $$108\mathrm{.}50$ per share at December $31,2023).$ Grace expected to

sell the shares as soon as the market price increases more next year.

The land balance includes: land used for operations and recorded at its cost of

$$120($the appraisal value of the land in $2023$ was $$2,800,000).$ Land held for future

use costs of $$100,000($appraisal value of land $$1,750,000).$ The company doesn't use

the revaluation model.

The building originally cost $$5,600,000.$ The equipment originally cost $$1,400,000$

Depreciation for $2023$ has already been recorded.

Scotiabank has pledged the building as security for their $$100,000$ loan to Grace

Corp $($collateral$),$ the loan bears annual interests at $8\%.$

Included in the long$-$term liabilites is: Bank loan is due each

year$),$ Notes Payable $$700,0007\%$ due November $30$th $2024.$

Included in the shareholder's equity is: Common shares $$1,050,00010,000$

issued outstanding, Retained earnings $?$ and Accumulated Other Comprehensive

Income

$$107,800.$

Required:

Part $1(20$ marks$)$

The company is a Canadian public company. Restate 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 Shareholder's Equity

Part $2(6$ marks$)$

Include any disclosure requirements.

Part $3(10$ marks$)$

If you changed any of the values to the assets or liabilities prepare any adjusting or

correcting entries to reflect the changes you made.