Question

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

Account Title	Debits				Credits
Cash	$	67,000
Accounts receivable		162,000
Inventory		286,000
Prepaid expenses		150,000
Equipment		322,000
Accumulated depreciation				$	111,000
Investments		142,000
Accounts payable					61,000
Interest payable					21,000
Deferred revenue					81,000
Income taxes payable					31,000
Notes payable					205,000
Allowance for uncollectible accounts					17,000
Common stock					401,000
Retained earnings					201,000
Totals	$	1,129,000		$	1,129,000

Additional information:

1. Prepaid expenses include $122,000 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 $31,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining $111,000 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 $41,000 note due in six months.
2. a $101,000 note due in six years.
3. a $63,000 note due in three annual installments of $21,000 each, with the next installment due August 31, 2022.

5. The common stock account represents 401,000 shares of no par value common stock issued and outstanding. The corporation has 802,000 shares authorized.

Required:
Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2021.

Answer 1