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 85.000 Accounts receivable 180.000 Inventories 295,000 Prepaid expenses 168,000 Machinery and equipment 340,000 Accumulated depreciation equipment 120,000 Investments 160,000 Accounts payable 70,000 Interest payable 30,000 Deferred revenue 90,000 Taxes payable 40,000 Notes payable 250,000 Allowance for uncollectible accounts 26,000 Common stock 410,000 Retained earnings 192,000 Totals 1,228,000 1,228,000 Additional information: 1. Prepaid expenses include $140,000 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 $40,000 in Treasury bills purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $120,000 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 $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, 2019. 5. The common stock account represents 410,000 shares of no par value common stock issued and outstanding. The corporation has 800,000 shares authorized