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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 $ 75,000 Accounts
The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company.
Account Title | Debits | Credits | |||||
Cash | $ | 75,000 | |||||
Accounts receivable | 170,000 | ||||||
Inventory | 290,000 | ||||||
Prepaid expenses | 158,000 | ||||||
Equipment | 330,000 | ||||||
Accumulated depreciation | $ | 115,000 | |||||
Investments | 150,000 | ||||||
Accounts payable | 65,000 | ||||||
Interest payable | 25,000 | ||||||
Deferred revenue | 85,000 | ||||||
Income taxes payable | 35,000 | ||||||
Notes payable | 225,000 | ||||||
Allowance for uncollectible accounts | 21,000 | ||||||
Common stock | 405,000 | ||||||
Retained earnings | 197,000 | ||||||
Totals | $ | 1,173,000 | $ | 1,173,000 | |||
Additional information:
- Prepaid expenses include $130,000 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 $35,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining $115,000 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 $45,000 note due in six months.
- a $105,000 note due in six years.
- a $75,000 note due in three annual installments of $25,000 each, with the next installment due August 31, 2022.
- The common stock account represents 405,000 shares of no par value common stock issued and outstanding. The corporation has 810,000 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.)
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