Question

Terracotta Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended December 2, 2016. Accounts Payable $ 1,010 Accounts Receivable 1,220 Accumulated Amortization 670 Accumulated Depreciation 1,300 Allowance for Doubtful Accounts 40 Cash and Cash Equivalents 1,200 Common Stock 640 Deferred Revenue 2,300 Equipment 9,230 Income Taxes Payable 40 Notes Payable (long-term) 4,370 Notes Receivable (long-term) 420 Prepaid Rent 440 Retained Earnings 8,870 Service Revenue 660 Short-Term Investments 5,650 Software 1,080 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).)

Answer 1

Answer:

Terracota Inc.
Balance Sheet
December 02, 2016
	Amount($)	Amount($)
Asets	In Million
Current Assets
Cash and Cash Equivalents		1,200
Short-term investments		5,650
Accounts Receivable	1,220
Allowance for Doubful Accounts	-40
Accounts Receivable, Net of Allowance		1,180
Prepaid Rent		440
Total Current Assets		8,470
Non-Current Assets
Equipment	9,230
Less: Acc. Dep.	-1,300
Equipment net of Acc. Dep.		7,930
Software	1,080
Less: Acc. Amortization	-670
Software net of Acc. Amortization		410
Notes Receivable		420
Total Non-Current Assets		8,760
Total assets		17,230
Liabilities and Shareholder's Equity
Liabilities
Current Liabilities
Accounts Payable		1,010
Deferred Revenue		2,300
Income Tax Payable		40
Total Current Liabilities		3,350
Non-Current Liabilities
Notes Payable		4,370
Total Non-Current Liabilities		4,370
Total Liabilities		7,720
Shareholder's Equity
Comman Stock		640
Retained Eranings		8,870
Total Shareholder's Equity		9,510
Total Liabilities and Shareholder's Equity		17,230