Problem 3-4 Balance sheet preparation [LO3-2, 3-3] The following is the ending balances of accounts at December 31, 2018 for the Weismuller Publishing Company. Account Title Cash Debits Credits 105,000 200,000 305,000 188,000 360,000 Accounts receivable Inventories Prepaid expenses Machinery and equipment Accumulated depreciation-equipment 130,000 180,000 Investments Accounts payable Interest payable Deferred revenue Taxes payable Notes payable Allowance for uncollectible accounts 80,000 40,000 100,000 50,000 300,000 36,000 420,000 182,000 Common stock Retained earnings 1,338,000 1,338,000 Totals Additional information: 1. Prepaid expenses include $160,000 paid on December 31, 2018, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility. 2. Investments include $50,000 in Treasury bills purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $130,000 includes investments in marketable 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 $60,000 note due in six months. b. a $141,000 note due in six years. c. a $99,000 note due in three annual installments of $33,000 each, with the next installment due August 31, 2019 5. The common stock account represents 420,000 shares of no par value common stock issued and outstanding. The corporation has 800,000 shares authorized. Required: Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.) WEISMULLER PUBLISHING COMPANY Balance Sheet At December 31, 2018 Assets Current assets Total current assets 0 Property, plant, and equipment 0 Other assets 0 Total assets Liabilities and Shareholders' Equity Current liabilities Total current liabilities 0 Total liabilities Shareholders' equity 0 Total liabilities and shareholders' equity 0 o