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.

Question

Business

Blake Moody

10 December, 05:32

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.

+4

Answers (1)

Know the Answer?

Zaire Bradshaw · Answer 1

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