Question

Terracotta Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended December 2, 2016.

Accounts Payable	$	880
Accounts Receivable		960
Accumulated Amortization		540
Accumulated Depreciation		1,170
Allowance for Doubtful Accounts		70
Cash and Cash Equivalents		1,070
Common Stock		510
Deferred Revenue		1,980
Equipment		7,930
Income Taxes Payable		70
Notes Payable (long-term)		3,070
Notes Receivable (long-term)		290
Prepaid Rent		310
Retained Earnings		7,570
Service Revenue		530
Short-Term Investments		4,350
Software		950

Prepare a classified balance sheet. The Allowance for Doubtful Accounts relates entirely to Accounts Receivable. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Current Assetsselected answer correct
Cash and Cash Equivalentsselected answer correct	not attempted	$1,070selected answer correct
Short-term Investmentsselected answer correct	not attempted	4,350selected answer correct
Accounts Receivableselected answer correct	$960selected answer correct
Allowance for Doubtful Accountsselected answer correct	(70)selected answer correct
Accounts Receivable, net of Allowance		890selected answer correct
Prepaid Rentselected answer correct		310selected answer correct
Total Current Assetsselected answer correct		6,620selected answer correct
Non-current Assetsselected answer correct
Equipmentselected answer correct	7,930selected answer correct
Accumulated Depreciationselected answer correct	(1,170)selected answer correct
Equipment, net of Accumulated Depreciation		6,760selected answer correct
Notes Receivableselected answer correct		290selected answer correct
Softwareselected answer correct	950selected answer correct
Accumulated Amortizationselected answer correct	(540)selected answer correct
Software, net of Accumulated Amortization		410selected answer correct
Total Assetsselected answer correct		$14,080
not attempted
Liabilitiesselected answer incorrect
Accounts Payableselected answer correct	not attempted	$880selected answer correct
Deferred Revenueselected answer correct	not attempted	1,980selected answer correct
Income Tax Payableselected answer correct	not attempted	70selected answer correct
Notes Payableselected answer incorrect		not attempted	3,070selected answer incorrect
Total Liabilitiesselected answer incorrect		6,000
Stockholders' Equityselected answer incorrect
Common Stockselected answer incorrect	not attempted	510selected answer incorrect
Retained Earningsselected answer incorrect	not attempted	7,570selected answer incorrect
Total Liabilities and Stockholders' Equityselected answer incorrect

I'm not sure what i did wrong here, where those indicated answer incorrect from Liability down to end. Please correct and explain. thank you

Answer 1

Classified balance sheet

ASSETS
current assets
Cash and cash equivalent		1070
Short-Term Investments		4350
Account receivable	960
Less; Allowance for doubtful accounts	-70	890
Prepaid rent		310
Total Current assets			6620
Non Current assets
Notes Receivable (long-term)		290
Equipment	7930
Less; Accumulated Depreciation	-1170	6760
Software	950
Less: Accumulated Amortization	-540	410
Total Non Current assets			7460
Total Assets			14080
Liabilities and stockholder's equity
Current Liabilities
Account payable		880
Income Taxes Payable		70
Deferred revenue		1980
Total current liabilities			2930
Long term liabilities
Notes payable		3070
Total long term liabilities			3070
Total liabilities			6000
Stockholder's equity
Common Stock		510
Retained earnings		7570
Total Stockholder's equity			8080
Total liabilities and stockholder's equity			14080