P $3-4$

Balance sheet

preparation

LO$3-2,$ LO$3-3$

The following is the ending balances of accounts at December $31,2016$ for the Weismuller Publishing Company.

Prepaid expenses inbude whan paid on December $31,2016,$ for a two$-$year lease on the building that

houses both the adn

Investments include $$,9,000$ in Freasury bills purchased on November $30,2016.$ The bills mature on

January $30,2017.$ The remaining $$10,000$ includes investments in marketable equity securities that the com$-$

pany intends to sell in the next year.

Deferred revenue represents chstonaer prepayments for magazine subscriptions. Subscriptions are for periods

of one year or less.

The notes payable account masists of the following:

a$.$ a $$40,000$ unte due in sil inonths.

b$.$ a $$100,000$ note due in sis years.

c$.$ a $$60,000$ noie due in three annual instaliments of $$20,000$ each, with the next installment due

August $31,2017.$

The common stock account represents $400,000$ 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 $31,2016.$