Reference no: EM132832508
Question - The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company.
Account Title Debits Credits
Cash $93,000
Accounts receivable 188,000
Inventory 299,000
Prepaid expenses 176,000
Equipment 348,000
Accumulated depreciation $124,000
Investments 168,000
Accounts payable 74,000
Interest payable 34,000
Deferred revenue 94,000
Income taxes payable 44,000
Notes payable 270,000
Allowance for uncollectible accounts 30,000
Common stock 414,000
Retained earnings 188,000
Totals $1,272,000 $1,272,000
Additional information:
1. Prepaid expenses include $148,000 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 $44,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining $124,000 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:
a) $54,000 note due in six months.
b) $135,000 note due in six years.
c) $81,000 note due in three annual installments of $27,000 each, with the next installment due August 31, 2022.
1. The common stock account represents 414,000 shares of no par value common stock issued and outstanding. The corporation has 828,000 shares authorized.
Required - Prepare classified balanced sheet for the Weismuller Publishing Company at December 31, 2021.