The following is the ending balances of accounts at December 31, 2018 for the We

Question

The following is the ending balances of accounts at December 31, 2018 for the Weismuller Publishing Company. Account Title Cash Accounts receivable Inventories Prepaid expenses Machinery and equipment Accumulated depreciation-equipment Investments Accounts payable Interest payable Deferred revenue Taxes payable Notes payable Allowance for uncollectible accounts Common stock Retained earnings Totals Credits Debits 81,000 176,000 293,000 164,000 336,000 118,000 156,000 68,000 28,000 88,000 38,000 240,000 24,000 408,000 194,000 1,206,000 1,206,000 Additional information: 1. Prepaid expenses include $136,000 paid on December 31, 2018, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility. 2. Investments include $38,000 in Treasury bills purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $118,000 includes investments in marketable 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 $48,000 note due in six months b. a $129,000 note due in six years. c. a $63,000 note due in three annual installments of $21,000 each, with the next installment due August 31, 2019 5. The common stock account represents 408,000 shares of no par value common stock issued and outstanding. The corporation has 800,000 shares authorized Required: Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.) WEISMULLER PUBLISHING COMPANY Balance Sheet

Explanation / Answer

Balance Sheet :-

Assets Amount($) Amount($) Amount($) Current assets :- Cash ($81000+$38000) 119000 Accounts Receivable 176000 Allowance for uncollectible accounts (24000) Accounts Receivable(Net) 152000 Inventories 293000 Prepaid Expenses($164000-($136000/2)) 96000 Investments ($156000 - $38000) 118000 Total Current Assets 778000 Property, Plant and Equipment :- Machinery and Equipment 336000 Accumulated Depreciation (118000) Total Property, Plant and Equipment 218000 Other Assets :- Prepaid Expenses ($136000/2) 68000 Total Other Assets 68000 Total Assets 1064000 Liabilities and Stockholder's Equity Current Liabilities :- Accounts Payable 68000 Interest Payable 28000 Defferred Revenue 88000 Taxes Payable 38000 Notes Payable ($48000 + $21000) 69000 Total Current Liabilities 291000 Long Term Liabilities :- Notes Payable ($129000+($63000-$21000)) 171000 Total Long Term Liabilities 171000 Stockholder's Equity :- Common Stock 408000 Retained Earnings 194000 Total Stockholder's Equity 602000 Total Liabilities and Stockholder's Equity 1064000

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