Problem 3-4 (Algo) Balance sheet preparation [LO3-2, 3-3] The following is the ending balances of accounts at December 31, 2024, for the Weismuller Publishing Company. 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 Additional information: Debits $ 85,000 Credits 180,000 295,000 168,000 340,000 $ 120,000 160,000 70,000 30,000 90,000 40,000 250,000 26,000 410,000 192,000 $ $ 1,228,000 1,228,000 1. Prepaid expenses include $140,000 paid on December 31, 2024, for two year of rent on the building that houses both the administrative offices and the manufacturing facility. 2. Investments include $40,000 in Treasury bills purchased on November 30, 2024. The bills mature on January 30, 2025. The remaining $120,000 is an investment in equity securities that the company intends to sell in the next year. 3. Deferred revenue represents customer prepayments for subscriptions. Subscriptions are for periods of one year or less. 4. The notes payable account consists of the following: a. a $50,000 note due in six months. b. a $131,000 note due in six years. c. a $69,000 note due in three annual installments of $23,000 each, with the next installment due August 31, 2025. 5. The common stock account represents 410,000 shares of no par value common stock issued and outstanding. The corporation has 820,000 shares authorized.