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

Account Title	Debits				Credits
Cash	$	95,000
Accounts receivable		190,000
Inventory		300,000
Prepaid expenses		178,000
Equipment		350,000
Accumulated depreciation				$	125,000
Investments		170,000
Accounts payable					75,000
Interest payable					35,000
Deferred revenue					95,000
Income taxes payable					45,000
Notes payable					275,000
Allowance for uncollectible accounts					31,000
Common stock					415,000
Retained earnings					187,000
Totals	$	1,283,000		$	1,283,000

Additional information:

1. Prepaid expenses include $150,000 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 $45,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining $125,000 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 $55,000 note due in six months.
2. a $136,000 note due in six years.
3. a $84,000 note due in three annual installments of $28,000 each, with the next installment due August 31, 2022.

5. The common stock account represents 415,000 shares of no par value common stock issued and outstanding. The corporation has 830,000 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.)

Answer rating: 100% (QA)

Particulars Amount as on Dec 312021 Liabilities Common Stock 415000 Retained earnings 1... View the full answer