Question

The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company.

Account Title	Debits				Credits
Cash	$	105,000
Accounts receivable		200,000
Inventory		305,000
Prepaid expenses		188,000
Equipment		360,000
Accumulated depreciation				$	130,000
Investments		180,000
Accounts payable					80,000
Interest payable					40,000
Deferred revenue					100,000
Income taxes payable					50,000
Notes payable					300,000
Allowance for uncollectible accounts					36,000
Common stock					420,000
Retained earnings					182,000
Totals	$	1,338,000		$	1,338,000

Additional information:

1. Prepaid expenses include $160,000 paid on December 31, 2021, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility.
2. Investments include $50,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining $130,000 is an investment in equity securities that the company intends to sell in the next year.
3. Deferred revenue represents customer prepayments for magazine subscriptions. Subscriptions are for periods of one year or less.
4. The notes payable account consists of the following:

1. a $60,000 note due in six months.
2. a $141,000 note due in six years.
3. a $99,000 note due in three annual installments of $33,000 each, with the next installment due August 31, 2022.

5. The common stock account represents 420,000 shares of no par value common stock issued and outstanding. The corporation has 840,000 shares authorized.

Required:
Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Weismuller Publishing Company
Decemebr, 31, 2021
Asset
Current Assets
Cash (105000+50000)	$155,000
Short Term Investments	$130,000
Accounts Receivable, net of allowance ($200000-36000)	$164,000
Inventories	$305,000
Prepaid Expenses (188000-80000)	$108,000	$862,000
Property, Plant and Equipment
Equipment	$360,000
Accumulated Depreciation : Equipment	-$130,000
Property, Plant And Equipment, net		$230,000
Other Assets
Prepaid Expenses (160000/2)		$80,000
Total Assets		$1,172,000
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable	$80,000
Interest Payable	$40,000
Deferred Revenue	$100,000
Taxes Payable	$50,000
Notes Payable (60000+33000)	$93,000	$363,000
Long Term Liabilities
Notes Payable (141000+33000*2)		$207,000
Stockholders' Equity
Common Stock, no par value, 840,000 shares authorized, 420,000 shares issued and outstanding	$420,000
Retained Earnings	$182,000	$602,000
Total Liabilities and Stockholders' Equity		$1,172,000