Question

The following is the ending balances of accounts at December 31, 2018 for the Weismuller Publishing Company.

Account Title	Debits			Credits
Cash		101,000
Accounts receivable		196,000
Inventories		303,000
Prepaid expenses		184,000
Machinery and equipment		356,000
Accumulated depreciation—equipment				128,000
Investments		176,000
Accounts payable				78,000
Interest payable				38,000
Deferred revenue				98,000
Taxes payable				48,000
Notes payable				290,000
Allowance for uncollectible accounts				34,000
Common stock				418,000
Retained earnings				184,000
Totals		1,316,000		1,316,000

Additional information:

Prepaid expenses include $156,000 paid on December 31, 2018, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility.

Investments include $48,000 in Treasury bills purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $128,000 includes investments in marketable 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 $58,000 note due in six months.

a $139,000 note due in six years.

a $93,000 note due in three annual installments of $31,000 each, with the next installment due August 31, 2019.

The common stock account represents 418,000 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.

Answer 1