Question
Case:Tesla,Inc.YouwillbeusingtheConsolidatedStatementsofOperations(IncomeStatement)onpage66,theConsolidatedBalanceSheetsonpage65,andtheConsolidatedStatementsofRedeemableNoncontrollingInterestsandEquity(statementofstockholders'equity).PleaserememberthatfromtheRedeemableNoncontrrollingInterestsandEquitystatementyouneedonlytheRetainedEarningsportionfromthemostrecentyear.AlsoTeslahashadrepeatednetlosses,resultinginwhatisnormallyretainedearningsbeingreferredtoasAccumulatedDeficit.Inthistransactionanalysis,recordthetransactionsandadjustmentsdescribedbelowdirectlyintothefinancialstatements.StartwiththethreefinancialstatementsenteringtheDecember31,2019numbersforthosefinancials.Besuretofomatthefinancialscorrectly,anduseformulasfortotalsandsubtotals.Thenrecordthetransactionsandadjustments,usingacolumntorecordeach,totherightofthe/31/19numbers.Astransactionsarerecorded,besurethefinancialstatementsareupdatedaccordingly,arrivingatfinalbalancesafteralltransactionshavebeenrecorded.Amountsbelowarein$millions. a)AlookattheStatementofOperationsshowsthatTeslahasseveralrevenuestreams,thelargestbeingautomotivesales.AutomotivesaleshasitscostofsalescounterpartbelowCostofrevenuesandAutomotiveleasingalsohasacostofsalescounterpartseverallinesdown.PleaserecordadditionalAutomotivesalesof$2,000withthecostofrevenuebeing$1,200andadditionalAutomotiveleasingof$130withthecostofrevenuebeing$55.Thesewerecashrevenues.Onthebalancesheetreduceinventoriesforbothcostsofrevenue. b)IncurredadditionalSelling,generalandadministrativeexpenses,onaccount,$158. c)HadadditionalServicesandotherrevenuesof$800.Customerssigned3-month,8%notesreceivable.RecordthenotesreceivableinMyPowercustomernotesreceivable. d)Threemonthslater,receivedpaymentplusinterestonthenotesreceivableincabove e)Ananalysisofaccountsreceivableresultsinanestimatethat9%ofaccountsreceivablewillnotbecollected.Pleaserecordtheadjustment. f)Purchased$1,100ofProperty,plant,andequipment,paying$200cashandsigningalong-termnotepayableforthebalance. g)RecordeddepreciationonProperty,plantandequipment,of$980. h)Additionalincometaxesof$46wereincurred,andwillbepaidlater,recordaliabilityandtheadditionalincometaxes.UseProvisionforincometaxesontheStatementofOperations.
Case:Tesla,Inc.YouwillbeusingtheConsolidatedStatementsofOperations(IncomeStatement)onpage66,theConsolidatedBalanceSheetsonpage65,andtheConsolidatedStatementsofRedeemableNoncontrollingInterestsandEquity(statementofstockholders'equity).PleaserememberthatfromtheRedeemableNoncontrrollingInterestsandEquitystatementyouneedonlytheRetainedEarningsportionfromthemostrecentyear.AlsoTeslahashadrepeatednetlosses,resultinginwhatisnormallyretainedearningsbeingreferredtoas"AccumulatedDeficit".Inthistransactionanalysis,recordthetransactionsandadjustmentsdescribedbelowdirectlyintothefinancialstatements.StartwiththethreefinancialstatementsenteringtheDecember31,2019numbersforthosefinancials.Besuretofomatthefinancialscorrectly,anduseformulasfortotalsandsubtotals.Thenrecordthetransactionsandadjustments,usingacolumntorecordeach,totherightofthe/31/19numbers.Astransactionsarerecorded,besurethefinancialstatementsareupdatedaccordingly,arrivingatfinalbalancesafteralltransactionshavebeenrecorded.Amountsbelowarein$millions.
a)AlookattheStatementofOperationsshowsthatTeslahasseveralrevenuestreams,thelargestbeingautomotivesales.Automotivesaleshasitscostofsalescounterpartbelow"Costofrevenues"andAutomotiveleasingalsohasacostofsalescounterpartseverallinesdown.PleaserecordadditionalAutomotivesalesof$2,000withthecostofrevenuebeing$1,200andadditionalAutomotiveleasingof$130withthecostofrevenuebeing$55.Thesewerecashrevenues.Onthebalancesheetreduceinventoriesforbothcostsofrevenue.
b)IncurredadditionalSelling,generalandadministrativeexpenses,onaccount,$158.
c)HadadditionalServicesandotherrevenuesof$800.Customerssigned3-month,8%notesreceivable.Recordthenotesreceivablein"MyPowercustomernotesreceivable".
d)Threemonthslater,receivedpaymentplusinterestonthenotesreceivablein"c"above
e)Ananalysisofaccountsreceivableresultsinanestimatethat9%ofaccountsreceivablewillnotbecollected.Pleaserecordtheadjustment.
f)Purchased$1,100ofProperty,plant,andequipment,paying$200cashandsigningalong-termnotepayableforthebalance.
g)RecordeddepreciationonProperty,plantandequipment,of$980.
h)Additionalincometaxesof$46wereincurred,andwillbepaidlater,recordaliabilityandtheadditionalincometaxes.UseProvisionforincometaxesontheStatementofOperations.
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