Question

The following is the ending balances of accounts at December 31, 2018 for the Weismuller Publishing Company.

Account Title	Debits			Credits
Cash		101,000
Accounts receivable		196,000
Inventories		303,000
Prepaid expenses		184,000
Machinery and equipment		356,000
Accumulated depreciation—equipment				128,000
Investments		176,000
Accounts payable				78,000
Interest payable				38,000
Deferred revenue				98,000
Taxes payable				48,000
Notes payable				290,000
Allowance for uncollectible accounts				34,000
Common stock				418,000
Retained earnings				184,000
Totals		1,316,000		1,316,000

Additional information:

Prepaid expenses include $156,000 paid on December 31, 2018, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility.

Investments include $48,000 in Treasury bills purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $128,000 includes investments in marketable equity securities that the company intends to sell in the next year.

Deferred revenue represents customer prepayments for magazine subscriptions. Subscriptions are for periods of one year or less.

The notes payable account consists of the following:

a $58,000 note due in six months.

a $139,000 note due in six years.

a $93,000 note due in three annual installments of $31,000 each, with the next installment due August 31, 2019.

The common stock account represents 418,000 shares of no par value common stock issued and outstanding. The corporation has 800,000 shares authorized.

Required:
Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2018.

Answer 1

CLASSIFIED BALANCE SHEET
PARTICUARS	AMOUNT($)	AMOUNT($)	AMOUNT($)
ASSETS
CURRENT ASSETS
CASH		101000
MARKETABLE SECURITIES		128000
ACCOUNTS RECEIVABLE	196000
LESS: ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS	34000	162000
INVENTORIES		303000
PREPAID EXPENSES		28000
TOTAL CURRENT ASSETS			722000
OTHER ASSETS
PREPAID EXPENSES FOR MORE THAN ONE YEAR		156000	156000
INVESTMENTS
TREASURY BILLS		48000	48000
PROPERTY PLANT AND EQUIPMENT
MACHINERY AND EQUIPMENT	356000
LESS: ACCUMULATED DEPRECIATION	128000
NET PROPERTY PLANT AND EQUIPMENT		228000	228000
INTANGIBLE ASSETS
TOTAL ASSETS			1154000
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITY
ACCOUNTS PAYABLE		78000
CURRENT MATURITY OF NOTES PAYABLE		89000
INTEREST PAYABLE		38000
DEFERRED REVENUE		98000
TAXES PAYABLE		48000
TOTAL CURRENT LIABILITY			351000
LONG TERM LIABILITY
NOTES PAYABLE		201000	201000
TOTAL LIABILITY			552000
SHAREHOLDER'S EQUITY
COMMON STOCK		418000
RETAINED EARNINGS		184000
TOTAL SHAREHOLDER'S EQUITY			602000
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY			1154000