Question

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

Account Title	Debits			Credits
Cash		73,000
Accounts receivable		168,000
Inventories		289,000
Prepaid expenses		156,000
Machinery and equipment		328,000
Accumulated depreciation—equipment				114,000
Investments		148,000
Accounts payable				64,000
Interest payable				24,000
Deferred revenue				84,000
Taxes payable				34,000
Notes payable				220,000
Allowance for uncollectible accounts				20,000
Common stock				404,000
Retained earnings				198,000
Totals		1,162,000		1,162,000

Additional information:

Prepaid expenses include $128,000 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 $34,000 in Treasury bills purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $114,000 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 $44,000 note due in six months.

a $104,000 note due in six years.

a $72,000 note due in three annual installments of $24,000 each, with the next installment due August 31, 2019.

The common stock account represents 404,000 shares of no par value common stock issued and outstanding. The corporation has 600,000 shares authorized.

Required:
Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Weismullar Publishing Company
Balance Sheet At December 31, 2018
Assets			Liabilities and Equity
Current Assets:			Current Liabilities:
Cash	73,000		Accounts payable	64,000
Accounts receivable	1,68,000		Interest payable	24,000
Allowance for uncollectible accounts	-20,000		Deferred revenue	84,000
Inventories	2,89,000		Taxes payable	34,000
Prepaid expenses	92,000		Notes payable	68,000
Total Current Assets	6,02,000		Total Current Liabiilites	2,74,000
Short term Investments:			Long Term Liabilities
Investments	1,14,000		Notes payable	1,52,000
Fixed Assets:			Share holders Equity:
Machinery and equipment	3,28,000		Authorised share capital -600000 Shares
Accumulated depreciation—equipment	-1,14,000		Common stock of 404,000 Shares	4,04,000
Prepaid expenses	64,000		Retained earnings	1,98,000
Total Non-Current Assets	2,78,000		Treasury Stock	-34000
			Total Shareholders Equity	5,68,000
Total Assets	9,94,000		Total Liabilities and shareholders equity	9,94,000