Polychromasia, Inc. had a number of receivables from subsidiaries at the balance sheet date, as well as
Question:
Polychromasia, Inc. had a number of receivables from subsidiaries at the balance sheet date, as well as several payables to subsidiaries. Of its five subsidiaries, four are consolidated in the financial statements (Green Company, Black Inc., White & Sons, and Silver Co.). Only the Brown Company is not consolidated with Polychromasia and the other affiliates. The following list of receivables and payables shows balances at 12/31/13.
Interest receivable from the Brown Company.....................$ 50,000
Interest payable to Black Inc......................................................75,000
Intercompany payable to Silver Co.........................................105,000
Long-term advance to Green Company.................................150,000
Long-term payable to Silver Co...............................................450,000
Long-term receivable from Brown Company........................500,000
Required:
A. Show the classification and amount(s) that should be reported in the consolidated balance sheet of Polychromasia, Inc. and Subsidiaries at 12/31/13 as receivable from subsidiaries.
B. Show the classification and amount(s) that should be reported in the consolidated balance sheet of Polychromasia, Inc. and Subsidiaries at 12/31/13 as payable to subsidiaries.
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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