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	Debits			Credits
Cash		87,000
Accounts receivable		182,000
Inventories		296,000
Prepaid expenses		170,000
Machinery and equipment		342,000
Accumulated depreciationequipment				121,000
Investments		162,000
Accounts payable				71,000
Interest payable				31,000
Deferred revenue				91,000
Taxes payable				41,000
Notes payable				255,000
Allowance for uncollectible accounts				27,000
Common stock				411,000
Retained earnings				191,000
Totals		1,239,000		1,239,000

Additional information:

1. Prepaid expenses include $142,000 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 $41,000 in Treasury bills purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $121,000 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:

1. a $51,000 note due in six months.
2. a $132,000 note due in six years.
3. a $72,000 note due in three annual installments of $24,000 each, with the next installment due August 31, 2019.

5. The common stock account represents 411,000 shares of no par value common stock issued and outstanding. The corporation has 700,000 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.)

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	Debits			Credits
Cash		87,000
Accounts receivable		182,000
Inventories		296,000
Prepaid expenses		170,000
Machinery and equipment		342,000
Accumulated depreciationequipment				121,000
Investments		162,000
Accounts payable				71,000
Interest payable				31,000
Deferred revenue				91,000
Taxes payable				41,000
Notes payable				255,000
Allowance for uncollectible accounts				27,000
Common stock				411,000
Retained earnings				191,000
Totals		1,239,000		1,239,000

Additional information:

1. Prepaid expenses include $142,000 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 $41,000 in Treasury bills purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $121,000 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:

1. a $51,000 note due in six months.
2. a $132,000 note due in six years.
3. a $72,000 note due in three annual installments of $24,000 each, with the next installment due August 31, 2019.

5. The common stock account represents 411,000 shares of no par value common stock issued and outstanding. The corporation has 700,000 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.)