The bookkeeper for Papacowski Corp has prepared the following balance sheet as at December 31,2023 : Dananaweli Com The following additional information is provided: 2. The allowance for doubtful accounts $9,200. 3. The net realizable value of the inventory that is included in the Balance Sheet is $95,000. The following items have not been recorded or included in inventory: - Papcowski bought inventory for $5,000 on December 27th, the terms are FOB shipping and the inventory arrived on January 3rd. - Papcowski sold inventory for $8,000 on December 28th, the terms are FOB destination and the customer received the inventory on January 4rd. The cost of the inventory sold was $2,400. - Papcowski received inventory of $10,000 on consignment from Merrigold Inc. 4. The investments section includes the following: - An interest bearing note receivable of $10,000 that was issued on October 1st,2023 bearing interest at 6% and is due on October 1,2024 - Long-term FV-OCl investment $8,000 carrying value (fair value $12,000 at December 4. The investments section includes the following: - An interest bearing note receivable of $10,000 that was issued on October 1st,2023 bearing interest at 6% and is due on October 1,2024 - Long-term FV-OCl investment $8,000 carrying value (fair value $12,000 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 Lindon Inc. purchased at $7.00 per share (fair value $10.50 per share at December 31, 2023). Papcowski expects to sell the shares as soon as the market price increases more next year. - Purchased 30% of Maroon Company. Papcowski purchased the shares for $15 each. Maroon company has 10,000 shares issued and outstanding. During the year the company declared and paid a dividend for $20,000 and the net income was $150,000. The fair value of the investment $17 per share. Only the purchase has been recorded. 5. The land balance includes: land used for operations and recorded at its cost of $120,000 (the appraisal value of the land in 2023 was $500,000 ). The company doesn't use the revaluation model. Land held for future use was purchased at $80,000. The fair value of this land on December 31st is $120,000. 6. The building originally cost $450,000 and it was purchased on January 1st,2023 and has a useful life of 20 years and a residual value of 50,000 . Depreciation has not been recorded for 2023. Accumulated depreciation is $0. 7. The license originally cost $25,000 and is being amortized over 5 years on a straight-line basis. Amortization for 2023 has not been recorded. 7. The license originally cost $25,000 and is being amortized over 5 years on a straight-line basis. Amortization for 2023 has not been recorded. 8. Current liabilities include: Deferred revenue $40,000 Accounts payable $97,000 Wages payable $14,500 Notes payable 5 year 5%$98,500(19,700 is due in 2024) 9. Long-term liabilities include: Bank loan ( 5%, due in 10 years) $200,000 Pension obligation $310,000 10. Shareholders Equity includes: Common shares $50,000 Retained earnings $230,600 Accumulated other comprehensive income $18,000 9. Long-term liabilities include: Bank loan (5\%, due in 10 years) $200,000 Pension obligation $310,000 10. Shareholders Equity includes: Common shares $50,000 Retained earnings $230,600 Accumulated other comprehensive income $18,000 Required: Part 1 (27 marks) The company is a Canadian public company. Prepare 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 Shareholders Equity. Part 2 (18 marks) Prepare any journal entries you made to reflect the additional information. The bookkeeper for Papacowski Corp has prepared the following balance sheet as at December 31,2023 : Dananaweli Com The following additional information is provided: 2. The allowance for doubtful accounts $9,200. 3. The net realizable value of the inventory that is included in the Balance Sheet is $95,000. The following items have not been recorded or included in inventory: - Papcowski bought inventory for $5,000 on December 27th, the terms are FOB shipping and the inventory arrived on January 3rd. - Papcowski sold inventory for $8,000 on December 28th, the terms are FOB destination and the customer received the inventory on January 4rd. The cost of the inventory sold was $2,400. - Papcowski received inventory of $10,000 on consignment from Merrigold Inc. 4. The investments section includes the following: - An interest bearing note receivable of $10,000 that was issued on October 1st,2023 bearing interest at 6% and is due on October 1,2024 - Long-term FV-OCl investment $8,000 carrying value (fair value $12,000 at December 4. The investments section includes the following: - An interest bearing note receivable of $10,000 that was issued on October 1st,2023 bearing interest at 6% and is due on October 1,2024 - Long-term FV-OCl investment $8,000 carrying value (fair value $12,000 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 Lindon Inc. purchased at $7.00 per share (fair value $10.50 per share at December 31, 2023). Papcowski expects to sell the shares as soon as the market price increases more next year. - Purchased 30% of Maroon Company. Papcowski purchased the shares for $15 each. Maroon company has 10,000 shares issued and outstanding. During the year the company declared and paid a dividend for $20,000 and the net income was $150,000. The fair value of the investment $17 per share. Only the purchase has been recorded. 5. The land balance includes: land used for operations and recorded at its cost of $120,000 (the appraisal value of the land in 2023 was $500,000 ). The company doesn't use the revaluation model. Land held for future use was purchased at $80,000. The fair value of this land on December 31st is $120,000. 6. The building originally cost $450,000 and it was purchased on January 1st,2023 and has a useful life of 20 years and a residual value of 50,000 . Depreciation has not been recorded for 2023. Accumulated depreciation is $0. 7. The license originally cost $25,000 and is being amortized over 5 years on a straight-line basis. Amortization for 2023 has not been recorded. 7. The license originally cost $25,000 and is being amortized over 5 years on a straight-line basis. Amortization for 2023 has not been recorded. 8. Current liabilities include: Deferred revenue $40,000 Accounts payable $97,000 Wages payable $14,500 Notes payable 5 year 5%$98,500(19,700 is due in 2024) 9. Long-term liabilities include: Bank loan ( 5%, due in 10 years) $200,000 Pension obligation $310,000 10. Shareholders Equity includes: Common shares $50,000 Retained earnings $230,600 Accumulated other comprehensive income $18,000 9. Long-term liabilities include: Bank loan (5\%, due in 10 years) $200,000 Pension obligation $310,000 10. Shareholders Equity includes: Common shares $50,000 Retained earnings $230,600 Accumulated other comprehensive income $18,000 Required: Part 1 (27 marks) The company is a Canadian public company. Prepare 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 Shareholders Equity. Part 2 (18 marks) Prepare any journal entries you made to reflect the additional information