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The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company. Account Title Debits Credits Cash $ 83,000 Accounts
The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company.
Account Title | Debits | Credits | |||||
Cash | $ | 83,000 | |||||
Accounts receivable | 178,000 | ||||||
Inventory | 294,000 | ||||||
Prepaid expenses | 166,000 | ||||||
Equipment | 338,000 | ||||||
Accumulated depreciation | $ | 119,000 | |||||
Investments | 158,000 | ||||||
Accounts payable | 69,000 | ||||||
Interest payable | 29,000 | ||||||
Deferred revenue | 89,000 | ||||||
Income taxes payable | 39,000 | ||||||
Notes payable | 245,000 | ||||||
Allowance for uncollectible accounts | 25,000 | ||||||
Common stock | 409,000 | ||||||
Retained earnings | 193,000 | ||||||
Totals | $ | 1,217,000 | $ | 1,217,000 | |||
Additional information:
- Prepaid expenses include $138,000 paid on December 31, 2021, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility.
- Investments include $39,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining $119,000 is an investment in equity securities that the company intends to sell in the next year.
- Deferred revenue represents customer prepayments for magazine subscriptions. Subscriptions are for periods of one year or less.
- The notes payable account consists of the following:
- a $49,000 note due in six months.
- a $130,000 note due in six years.
- a $66,000 note due in three annual installments of $22,000 each, with the next installment due August 31, 2022.
- The common stock account represents 409,000 shares of no par value common stock issued and outstanding. The corporation has 818,000 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.)
Balance Sheet At December 31, 2021 Assets Current assets: Cash and cash equivalents Accounts receivable Allowance for uncollectible accounts Net accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment: Net property, plant, and equipment Other assets: Total assets Liabilities and Shareholders' Equity Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Shareholders' equity: Total shareholders' equity Total liabilities and shareholders' equity
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