5 6 points NO 01:4120 Problem 3-4 (Algo) Balance sheet preparation [LO3-2, 3-3] The following is the ending balances of accounts at December 31, 2021, for the Welsmuller Publishing Company. Account Title Cash Accounts receivable. Inventory Prepaid expenses Equipment Accumulated depreciation Investments Accounts payable Interest payable Deferred revenue Income taxes payable Credits Debits $103,000 198,000 304,000 186,000 358,000 $129,000 178,000 79,000 39,000 99.000 49,000 Notes payable Allowance for uncollectible accounts Common stock Betained earninge Totala Additional information: 295,000 35,000 419,000 103,000 $1,327,000 $1,327,000 1. Prepaid expenses include $158,000 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 $49,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining $129,000 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: a. a $59,000 note due in six months. b. a $140,000 note due in six years. c. a $96,000 note due in three annual installments of $32.000 each, with the next installment due August 31, 2022. 5. The common stock account represents 419,000 shares of no par value common stock issued and outstanding. The corporation has 838,000 shares authorized.