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

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The bookkeeper for Grace Inc. prepared the following balance sheet at Dec 31, 2023. Cash Accounts Receivable Inventories Investments Land Building (net) Equipment (net) Tradename (net) 64,500 Current liabilities 92,000 Long-term liabilities 24,600 Shareholder's Equity 33,200 220,000 168,000 92,500 14,000 708,800 The following additional information is provided 1. The cash balance includes: Petty cash 500 T-bill 25000 Cash advance to employee, payable on demand 1800 Savings account CIBC 6700 Chequing account CIBC 27,500 Bank overdraft at TD bank -1000 Short term paper maturity 2 months 4000 64500 150,000 200,000 358,800 708,800 2. Allowance for doubtful account is 7,200 3 The net realizable value of inventory that is included in the balance sheet is $20,000 Inventories do not include $30,000 of merchandise that was in transit at December 31. Of this amount, $20,000 was bought from George Inc. with terms f.o.b. shipping point (the net realizable value of this inventory was $35,000) The remainder of inventory that cost $10,000 was shipped from Grace Inc. for consignment. The net realizable value for this inventory is $24,000. 4. The investments section includes the following: Name Box An interest bearing note receivable of $8,000 that was issued on June 1st, , 2023 bearing interest at 6% and is due on June 1, 2024 Long-term FV-OCI 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 $13.00 per share (fair value $15.50 per share at December 31, 2023). Grace expected to sell the shares as soon as the market price increases more next year. 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 $400,000). Land held for future use cost of $100,000 (appraisal value of land $250,000). The company doesn't use the revaluation model. 6. The building originally cost $800,000. 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%. . 7 The tradename originally cost $24,000 and is being amortized over 6 years on a straight-line basis. Amortization for 2023 had already been recorded. 8. Included in the current liabilities is: Accounts payable $10,500, Wages payable $34,000, Deferred Revenue $24,000 and Pension obligation $81,500 9. Included in the long-term liabiliites is: Bank loan $100,000 6% (10,000 is due each year), Notes Payable $100,000 7% due November 30th 2024. 10. Included in the shareholder's equity is: Common shares $150,000 10,000 issued and outstanding, Retained earnings? and Accumulated Other Comprehensive Income $15,400. 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. Part 2: Disclosure Requirements The disclosures for the financial statements would include notes on: Accounting Policies: Specific to the industry and according to Canadian GAAP or IFRS as applicable. Details of Significant Accounts: Such as the composition of investments, details on property, plant, and . equipment, intangible assets, and the basis for valuation. Contingencies and Commitments: Legal matters or other events that may affect financial position. Subsequent Events: Events after the balance sheet date that have a material impact on the financial statements. Part 3: Adjusting or Correcting Entries We need to reflect changes in values from the additional information provided by creating journal entries. This would involve: . . . Adjusting Cash: For petty cash, T-bill, bank overdrafts, and short-term papers. Adjusting Receivables: For doubtful accounts. Adjusting Inventories: For items in transit or on consignment. Adjusting Investments: To reflect fair value or impairment losses/gains. Explanation: We give to required answers in the above step. The bookkeeper for Grace Inc. prepared the following balance sheet at Dec 31, 2023. Cash Accounts Receivable Inventories Investments Land Building (net) Equipment (net) Tradename (net) 64,500 Current liabilities 92,000 Long-term liabilities 24,600 Shareholder's Equity 33,200 220,000 168,000 92,500 14,000 708,800 The following additional information is provided 1. The cash balance includes: Petty cash 500 T-bill 25000 Cash advance to employee, payable on demand 1800 Savings account CIBC 6700 Chequing account CIBC 27,500 Bank overdraft at TD bank -1000 Short term paper maturity 2 months 4000 64500 150,000 200,000 358,800 708,800 2. Allowance for doubtful account is 7,200 3 The net realizable value of inventory that is included in the balance sheet is $20,000 Inventories do not include $30,000 of merchandise that was in transit at December 31. Of this amount, $20,000 was bought from George Inc. with terms f.o.b. shipping point (the net realizable value of this inventory was $35,000) The remainder of inventory that cost $10,000 was shipped from Grace Inc. for consignment. The net realizable value for this inventory is $24,000. 4. The investments section includes the following: Name Box An interest bearing note receivable of $8,000 that was issued on June 1st, , 2023 bearing interest at 6% and is due on June 1, 2024 Long-term FV-OCI 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 $13.00 per share (fair value $15.50 per share at December 31, 2023). Grace expected to sell the shares as soon as the market price increases more next year. 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 $400,000). Land held for future use cost of $100,000 (appraisal value of land $250,000). The company doesn't use the revaluation model. 6. The building originally cost $800,000. 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%. . 7 The tradename originally cost $24,000 and is being amortized over 6 years on a straight-line basis. Amortization for 2023 had already been recorded. 8. Included in the current liabilities is: Accounts payable $10,500, Wages payable $34,000, Deferred Revenue $24,000 and Pension obligation $81,500 9. Included in the long-term liabiliites is: Bank loan $100,000 6% (10,000 is due each year), Notes Payable $100,000 7% due November 30th 2024. 10. Included in the shareholder's equity is: Common shares $150,000 10,000 issued and outstanding, Retained earnings? and Accumulated Other Comprehensive Income $15,400. 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. Part 2: Disclosure Requirements The disclosures for the financial statements would include notes on: Accounting Policies: Specific to the industry and according to Canadian GAAP or IFRS as applicable. Details of Significant Accounts: Such as the composition of investments, details on property, plant, and . equipment, intangible assets, and the basis for valuation. Contingencies and Commitments: Legal matters or other events that may affect financial position. Subsequent Events: Events after the balance sheet date that have a material impact on the financial statements. Part 3: Adjusting or Correcting Entries We need to reflect changes in values from the additional information provided by creating journal entries. This would involve: . . . Adjusting Cash: For petty cash, T-bill, bank overdrafts, and short-term papers. Adjusting Receivables: For doubtful accounts. Adjusting Inventories: For items in transit or on consignment. Adjusting Investments: To reflect fair value or impairment losses/gains. Explanation: We give to required answers in the above step.