The bookkeeper for Papacowski Corp has prepared the following balance sheet as at December 31, 2023: 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 3td : - 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 bearihg 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 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,2020 and has a * useful life of 20 years and a residual value of 50,000 . Depreciation has been calculated and properly recorded for each year except no depreciation has been recorded for 2023 . Accumulated depreciation is $60,000. 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 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. Part 3 (5 marks) Peer evaluation Only submit if any of your group member did not strongly contribute to the group assignment. The bookkeeper for Papacowski Corp has prepared the following balance sheet as at December 31, 2023: 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 3td : - 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 bearihg 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 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,2020 and has a * useful life of 20 years and a residual value of 50,000 . Depreciation has been calculated and properly recorded for each year except no depreciation has been recorded for 2023 . Accumulated depreciation is $60,000. 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 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. Part 3 (5 marks) Peer evaluation Only submit if any of your group member did not strongly contribute to the group assignment