Question

The following is the ending balances of accounts at December 31, 2021, for the Welsmuller Publishing Company Credits $ Debits 87,000 182,000 296,000 170,000 342,000 $ 121,000 162,000 Account Title Cash Accounts receivable Inventory Prepaid expenses Equipment Accumulated depreciation Investments Accounts payable Interest payable Deferred revenue Income taxes payable Notes payable Allowance for uncollectible accounts Common stock Retained earnings Totals 71,000 31,000 91,000 41,000 255,000 27,000 411,000 191.000 $1,239,000 $1,239,000 Additional information: 1. Prepaid expenses include $142.000 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 $41,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining S121,000 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. a $51,000 note due in six months b. a $132.000 note due in six years. c. a $72,000 note due in three annual installments of $24,000 each, with the next installment due August 31, 2022 5. The common stock account represents 411,000 shares of no par value common stock issued and outstanding. The corporation has 822.000 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

CLASSIFIED BALANCESHEET
ASSETS
CURRENT ASSETS
CASH		$       87,000
MARKETABLE SECURITIES		$     121,000
TREASURY BILLS		$       41,000
ACCOUNTS RECEIVABLE	$     182,000
LESS: ALLOWANCE FOR UNCOLLECTIBLEACCOUNTS	$       27,000	$     155,000
INVENTORIES		$     296,000
PREPAID EXPENSES		$       99,000
TOTAL CURRENT ASSETS			$     799,000
OTHER ASSETS
PREPAID EXPENSES FOR MORE THAN ONE YEAR		$ 71,000	$ 71,000
PROPERTY PLANT AND EQUIPMENT
EQUIPMENT	$     342,000
LESS: ACCUMULATED DEPRECIATION	$     121,000
NET PROPERTY PLANT AND EQUIPMENT		$     221,000	$     221,000
INTANGIBLE ASSETS
TOTAL ASSETS			$ 1,091,000
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
ACCOUNTS PAYABLE		$       71,000
CURRENT MATURITY OF NOTES PAYABLE		$       75,000
INTEREST PAYABLE		$       31,000
DEFERRED REVENUE		$       91,000
TAXES PAYABLE		$       41,000
TOTAL CURRENT LIABILITIES			$     309,000
LONG TERM LIABILITIES
NOTES PAYABLE		$     180,000	$     180,000
TOTAL LIABILITIES			$     489,000
SHAREHOLDER'S EQUITY
COMMON STOCK		$     411,000
RETAINED EARNINGS		$     191,000
TOTAL SHAREHOLDER'S EQUITY			$     602,000
TOTAL LIABILITIES AND SHAREHOLDER'SEQUITY			$ 1,091,000