Problem 3-4 (Algo) Balance sheet preparation (LO3-2, 3-3) The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company. Account Title Credits Debits 10,000 196.000 303,000 184,000 356,000 $ 128,000 176,000 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 78.000 38,000 98,000 48,000 290,000 34.000 418,000 184,000 $1,316,000 $1,316.000 Additional information: 1. Prepaid expenses include $156,000 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 $48,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining $128,000 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 $58,000 note due in six months. b. a $139,000 note due in six years. c. a $93.000 note due in three annual installments of $31,000 each, with the next installment due August 31, 2022. 5. The common stock account represents 418,000 shares of no par value common stock issued and outstanding. The corporation has 836,000 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.) WEISMULLER PUBLISHING COMPANY Balance Sheet At December 31, 2021 Assets Current assets Cash and cash equivalents 149.000 128,000 34,000 Investment in equity securites Allowance for uncollectible accounts Net accounts receivable Inventory Prepaid expenses 152.000 303,000 106,000 720,000 Total current assets Property, plant, and equipment: Equipment s Accumulated depreciation Net property, plant, and equipment Other assets: Prepaid expenses 356,000 (128,000) 228 000 78,000 Total assets $ 1,026,000 Liabilities and Shareholders' Equity Current liabilities: Accounts payable Interest payable Deferred revenue 78.000 38,000 98,000 48.000 79,000 OX Income taxes payable OOOOOO Notes payable 0 341.000 Total current liabilities Long-term abilities: Notes payable 211,000 O 552.000 Total liabilities Shareholders' equity Common stock Retained earnings s 418.000 184,000 Total shareholders' equity 602.000 Total liabilities and shareholders' equity $ 1.154,000 Red text indicates ne n e was expected in a celor a formula based calculations incorrect, no ponts deducted
