Question

Required information [The following information applies to the questions displayed below] The following accounts are taken from the financial statements of Facebook Inc. at September 30, 2016. (Amounts are in millions.) Accounts Payable Accounts Receivable Cash Common Stock Equipment Income Tax Expense Interest Expense Notes Payable (long-term) Prepaid Rent Retained Earnings Service Revenue Short-Term Investments Software $ 1,480 380 3,500 12,000 3,200 380 130 1,300 1,500 3,400 9,300 7,100 2,500 Required: 1. Prepare a classified balance sheet at September 30, 2016. (Enter your answers in millions (ie, 10,000,000 should be entered as 10).)

Answer 1

Solution:
	Facebook , Inc.
	Balance Sheet
	ASSETS	(In Millions)	LIABILITIES	(In Millions)
	CURRENT ASSETS:	AMOUNT	CURRENT LIABILITIES:
	Cash	$                  3,500	Accounts Payable	$                   1,480
	Account Receivable	$                      380
	Prepaid Rent	$                  1,500
	Short term Investments	$                  7,100
	Software	$                  2,500	Total of Current Liabilities	$                   1,480
	Total Current Assets	$                14,980	Long Term Liabilities
			Notes Payable	1300
			Total Liabilities	$                   2,780
	Long Term Assets		STOCKHOLDER'S EQUITY
	Equipment	$                  3,200	Common Stock	$                 12,000
	Less: Accumulated Depreciation		Retained Earnings	$                   3,400
	Total Long Term Assets	$                  3,200	Total Stockholder's Equity	$                 15,400
	TOTAL OF ASSETS	$                18,180	TOTAL OF LIABILITES & SAHREHOLDER'S EQUITY	$                 18,180