Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company. Account Title Debits Credits Cash $ 79,000 Accounts

The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company.

Account Title Debits Credits
Cash $ 79,000
Accounts receivable 174,000
Inventory 292,000
Prepaid expenses 162,000
Equipment 334,000
Accumulated depreciation $ 117,000
Investments 154,000
Accounts payable 67,000
Interest payable 27,000
Deferred revenue 87,000
Income taxes payable 37,000
Notes payable 235,000
Allowance for uncollectible accounts 23,000
Common stock 407,000
Retained earnings 195,000
Totals $ 1,195,000 $ 1,195,000

Additional information:

  1. Prepaid expenses include $134,000 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 $37,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining $117,000 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:
  1. a $47,000 note due in six months.
  2. a $128,000 note due in six years.
  3. a $60,000 note due in three annual installments of $20,000 each, with the next installment due August 31, 2022.
  1. The common stock account represents 407,000 shares of no par value common stock issued and outstanding. The corporation has 814,000 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.)

image text in transcribed

WEI SMULLER PUBLISHING COMPANY Balance Sheet At December 31, 2021 Assets Current assets: Cash and cash equivalents s 116,000 Net accounts receivable 0 116.000 Total current assets Property, plant, and equipment: 0 Net property, plant, and equipment Other assets: Total assets S 116.000 Liabilities and Shareholders' Equity Current liabilities: 0 Total current liabilities Long-term liabilities: 0 Total liabilities Shareholders' equity 0 Total shareholders' equity Total liabilities and shareholders' equity S 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Lean Audit The 20 Keys To World Class Operations A Health Check For Factory And Office

Authors: Joerg Muenzing

1st Edition

1514817829, 978-1514817827

More Books

Students also viewed these Accounting questions

Question

What are some of the common alloy elements added to steel?

Answered: 1 week ago