Question

Corporation ended its fiscal year on September​ 30, 2018​, with cash of $ 81 ​million, accounts receivable of $ 21 ​million, property and equipment of $ 29 ​million, and other​ long-term assets of $ 17 million. The​ company's liabilities consist of accounts payable of $ 30 million and​ long-term notes payable of $ 18 million. Terrance Corporation has total​ stockholders' equity of $ 100 ​million; of this​ total, common stock is $ 34 million. Solve for the​ company's ending retained earnings and then prepare Terrance ​Corporation's balance sheet at September​ 30, 2018. Use a proper heading on the balance sheet.

Answer 1

Answer:

Retained Earnings = Total Stockholders Equity - Common stock = 100-34 = 66 Million

                            Terrance ​Corporation

             Balance Sheet as at September​ 30, 2018

                                                   Millions         Millions  

Assets    

Non Current Assets    

Property and Equipment             $29    

Long term Assets                         $17    

Total Non Current Assets                             $46  

Current Asset    

Cash                                             $81    

Account Receivable                    $21    

Total Current Assets                                     $102    

Total Assets                                                   $148  

Equity and Liabilities    

Equity

Common Stock                            $34    

Retained Earning                         $66    

Total Stockholder's Equity                            $100  

Liabilities    

Non Current Liabilities    

Long Term Note Payable            $18    

Current Liabilities    

Account Payable                          $30    

Total Liabilities                                              $48  

Total Equity and Liabilities                          $148