Problem 3-4 Balance sheet preparation [L03-2, 3-3] The following is the ending b
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Problem 3-4 Balance sheet preparation [L03-2, 3-3] The following is the ending balances of accounts at December 31, 2018 for the Weismuller Publishing Company Account Title Cash nccounts receivable Inventories Prepaid expenses Machinery and equipment Accumulated depreclation-equipment Investments Accounts payable Interest payable Deferred revenue Taxes payable Notes payable Allowance for uncollectible accounts Common stock Retained earning Totals Debits 71,000 166,000 288,000 154,000 326,000 Credits 113,000 146,000 63,000 23,000 83,000 33,000 215,000 19,000 403,000 199,000 1,151,000 1,151,000 Additional information 1 Prepaid expenses include $126.000 paid on December 31, 2018, for a two year lease on the building that houses both the administrative offices and the manufacturing facility pat.Student Registrati..docxThe Ten Command...doc FATBMTH15301 (2) .docxExplanation / Answer
Answer:
WEISMULLER PUBLISHING COMPANY
Balance Sheet
At December 31, 2018
Assets
Current assets:
Cash and cash equivalents (1) (71000+33000)
$104,000
Short-term investments
113,000
Accounts receivable, net of allowance for uncollectible accounts of $19,000
147000
Inventories
288,000
Prepaid expenses (2)
126,000
Total current assets
778,000
Property, plant, and equipment:
Machinery and equipment
$326,000
Less: Accumulated depreciation
-113,000
Net property, plant, and equipment
213,000
Other assets:
Prepaid expenses
28,000
Total assets
$1,019,000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable
$63,000
Interest payable
23,000
Unearned revenues
83,000
Taxes payable
33,000
Note payable
43,000
Current maturities of long-term debt
23,000
Total current liabilities
268,000
Long-term liabilities:
Notes payable
149,000
Shareholders’ equity:
Common stock, no par value; 800,000 shares authorized and 403,000 share issued
403,000
Retained earnings
199,000
Total shareholders’ equity
602,000
Total liabilities and shareholders’ equity
$1,019,000
Notes:
1)
Includes $33,000 in U.S. treasury bills
2)
Excludes $28,000 in prepaid rent for the second year on the building lease
WEISMULLER PUBLISHING COMPANY
Balance Sheet
At December 31, 2018
Assets
Current assets:
Cash and cash equivalents (1) (71000+33000)
$104,000
Short-term investments
113,000
Accounts receivable, net of allowance for uncollectible accounts of $19,000
147000
Inventories
288,000
Prepaid expenses (2)
126,000
Total current assets
778,000
Property, plant, and equipment:
Machinery and equipment
$326,000
Less: Accumulated depreciation
-113,000
Net property, plant, and equipment
213,000
Other assets:
Prepaid expenses
28,000
Total assets
$1,019,000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable
$63,000
Interest payable
23,000
Unearned revenues
83,000
Taxes payable
33,000
Note payable
43,000
Current maturities of long-term debt
23,000
Total current liabilities
268,000
Long-term liabilities:
Notes payable
149,000
Shareholders’ equity:
Common stock, no par value; 800,000 shares authorized and 403,000 share issued
403,000
Retained earnings
199,000
Total shareholders’ equity
602,000
Total liabilities and shareholders’ equity
$1,019,000
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