Reference no: EM132019863
Question - Intercompany Receivables and Payables
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 12/31/10.
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 12/31/10 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 12/31/10 as payable to subsidiaries.