Question

Problem 3-4 (AGO) Dalance sheet preparauon [LUS-2, S- The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishin Credits $ Debits 83,000 178,000 294,000 166,000 338,000 $ 119,000 158,000 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 69,000 29,000 89,000 39,000 245,000 25, eee 409,000 193,000 $1,217,000 $1,217,600 Additional information: 1. Prepaid expenses include $138,000 paid on December 31, 2021, for a two-year lease on the b administrative offices and the manufacturing facility. 2. Investments include $39,000 in Treasury bills purchased on November 30, 2021. The bills ma remaining $119,000 is an investment in equity securities that the company intends to sell in th 3. Deferred revenue represents customer prepayments for magazine subscriptions. Subscription 4. The notes payable account consists of the following: a. a $49.000 note due in six months. b. a $130,000 note due in six years. c. a $66,000 note due in three annual installments of $22,000 each, with the next installme 5. The common stock account represents 409,000 shares of no par value common stock issue 818,000 shares authorized. Required: Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2 e indicated by a minus sign.) < Prey 2 of 5

Answer 1

Teis: Allowance for uncolledible accounts WEIS MULLER PUBLISHING COMPANY Balance sheet Al December 31.2091 Assets Lurrent Asses Cash and Cash Equivalent Short teym Investment Accounts Receivable $83000 $ 158000 $178000 1425000) $ 153000 Inventory $ 294 000 $ 97000 $ 785000 Puepaid Expenses 066000 - $ 69000) Totul current auct Pusbeuty, plant and Equipment: Equipment Acumulated Depreciation Net Pro Dex t4. Plant and Equipment Othew Assels: $ 338000 ($119.00) Do 1 $ 2.19000 $ 69000 Prepaid Expenses ( $138000 x 2) L $1073000 "Total Assets Liabilities and shareholder's Equity Current liabilities Accounts Payable Interest Payable Deferred Revenue Income taxes Payable Notes Payable Total Current liabilities Long - teu m liabilities Notes Payable $69000 $ 29000 $ 9000 $ 39000 $ 71000 $ 297000 $174000 $ 471000 Toto liabilities Shareholder's equity Common Stock Retained Earning. $409000 $193000 To tail Shareholder's Equity Total liabilities and Shawe holder's Equity $602000 $1073000

3. Deferred revenue is related for less than a year. So, It is Explanations : FORUM 1. Prepaid Expenses Total Prepaid Expense $ 166000 ($ 69000) ters: Long-term portion ( $138000x1/2) Current porton $ 97000 Wir hand) 2. To tal investments are to be realized on next So, all investments are short term. year. Thabit olla :21 Current liabilities (osold to him 4. Current liabilitles of Notes Payable : taus wor Due in six months : $ 49000 Installment due in 2022 Totul current liabilities of Notes payable ble $ 71000 lisamine pool.de 120522 A do (6008911 $ 245000 ucnotes kinds $ 22000 up? s long-term me tes payable : Total Notes Payable less: Cument liabilites for Notes Payable ($ 74000) Total long teum notes payable $174000 LO SFO