Question

The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company.

Account Title	Debits				Credits
Cash	$	79,000
Accounts receivable		174,000
Inventory		292,000
Prepaid expenses		162,000
Equipment		334,000
Accumulated depreciation				$	117,000
Investments		154,000
Accounts payable					67,000
Interest payable					27,000
Deferred revenue					87,000
Income taxes payable					37,000
Notes payable					235,000
Allowance for uncollectible accounts					23,000
Common stock					407,000
Retained earnings					195,000
Totals	$	1,195,000		$	1,195,000

Additional information:

1. Prepaid expenses include $134,000 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 $37,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining $117,000 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:

1. a $47,000 note due in six months.
2. a $128,000 note due in six years.
3. a $60,000 note due in three annual installments of $20,000 each, with the next installment due August 31, 2022.

5. The common stock account represents 407,000 shares of no par value common stock issued and outstanding. The corporation has 814,000 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.)

WEI SMULLER PUBLISHING COMPANY Balance Sheet At December 31, 2021 Assets Current assets: Cash and cash equivalents s 116,000 Net accounts receivable 0 116.000 Total current assets Property, plant, and equipment: 0 Net property, plant, and equipment Other assets: Total assets S 116.000 Liabilities and Shareholders' Equity Current liabilities: 0 Total current liabilities Long-term liabilities: 0 Total liabilities Shareholders' equity 0 Total shareholders' equity Total liabilities and shareholders' equity S 0

Answer 1

Weismuller publishing company

December, 31, 2021

ASSET

	Amount ($)	Amount ($)
Current asset
Cash (79000 + 37000)	$116000
Short term investments	$117000
Account receivable, net of allowance (174000- 23000)	$151000
Inventory	$292000
Prepaid expenses (162000-67000)	$95000	$771000
Property, plant and equipment
Equipment	$334000
Accumulated depreciation equipment	-$117000
Property plant and equipment net		$217000
Other assets
Prepaid expense (134000/2)		$67000
Total assets		$1055000

Liabilities and stockholders’ equity

Current liabilities
Accounts payable	$67000
Interest payable	$27000
Differed revenue	$87000
Taxes payable	$37000
Notes payable (47000+20000)	$67000	$285000
Long term liabilities
Notes payable (128000+20000*2)		$168000
Shareholders’ equity
Common stock, no par value, 814000 shares authorized 407000 shares issued and outstanding	$407000
Retained earnings	$195000	$602000
Total liabilities and stockholder’s equity		$1055000