Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company. Account Title Cash Accounts receivable Inventory Prepaid expenses
The following is the ending balances of accounts at December 31, 2021, 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 91,000 186,000 Credits 298,000 174,000 346,000 $ 123,000 166,000 73,000 33,000 93,000 43,000 265,000 29,000 413,000 189,000 $1,261,000 $1,261,000 1. Prepaid expenses include $146,000 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 $43,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining $123,000 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 $53,000 note due in six months. b. a $134,000 note due in six years. c. a $78,000 note due in three annual installments of $26,000 each, with the next installment due August 31, 2022. 5. The common stock account represents 413,000 shares of no par value common stock issued and outstanding. The corporation has 826,000 shares authorized. Required: Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2021. (Amounts to be deducted should
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started