The following is the ending balances of acounts at December 31, 2016, for the We
ID: 2336105 • Letter: T
Question
The following is the ending balances of acounts at December 31, 2016, for the Weismuller Publishing Company 79,000 174,000 292,000 162,000 334,000 Cash Accounts receivable Inventories Prepaid expenses Machinery and equipment Accumulated depreciation-equipment Investments Accounts payablé Interest payable Deferred revenue Taxes payable Notes payable Allowance for uncollectible accounts Common stock 117,000 154,000 67,000 27,000 87,000 37,000 235,000 23,000 407,000 195,000 Retained earnings Totals 1,195,00011 1,195,000 Additional information: 1, Prepaid expenses include $134.000 paid on December 31, 2016, for a two-year lease on the building bills purchased on November 30, 2016. The bills mature on that houses both the administrative offices and the manufacturing facility Investments include 337 000 inl January 30, 2 company intends to sell in the next year 017. The remaining $117,000 includes investments in marketable equity securities that the 3. Deferred revenue represents cus stomer prepayments for magazine subscriptions Subscriptions are for ods of one year or less The notes payable account consists of the following a. a $47,000 note due in six months b a $128,000 note due in six years c a $60 000 note due in three annual installments of $20,000 each, with the next installment due August ous taondno thec account represent d07 00 shareon par value common stock issued and corporation has 900,000 shares authorized Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31. 2016 (Amounts to be deducted should be indicated by a minus sign.) Required WEISMULLER PUBLISHING COMPANY Balance Sheet At December 31, 2016 AssetsExplanation / Answer
SOLUTION
WEISMULLER PUBLISHING COMPANY
Balance sheet
At December 31, 2016
Working notes-
1. Cash and cash equivalent = Amount of cash + Treasury bill amount
= $79,000 + $37,000 = $116,000
2. Accounts receivable = Amount of accounts receivable - Uncollectible accounts
= $174,000 - $23,000 = $151,000
3. Prepaid Expenses = Amount of prepaid expense - Prepaid rent on building lease for second year
= $162,000 - $67,000 = $95,000
Notes-
1. Investment in marketable securities = $117,000
2. Prepaid expense = $67,000 ($134,000/ 2 years)
Particulars Amount ($) Amount ($) Reference ASSETS Current assets- Cash and cash equivalent 116,000 Working note 1 Short term investment 117,000 Note 1 Accounts receivable 151,000 Working note 2 Inventories 292,000 Prepaid expense 95,000 Working note 3 Total current assets 771,000 Property,plant and Equipment- Machinery and Equipment 334,000 Less: Accumulated depreciation (117,000) Net property, plant and equipment 217,000 Other assets- Prepaid expense 67,000 Note 2 Total assets 1,055,000 LIABILITIES AND SHAREHOLDER"S EQUITY Current laibilities- Accounts payable 67,000 Interest payable 27,000 Deferred revenue 87,000 Taxes payable 37,000 Notes payable 235,000 Workingnote 4 Total current liabilities 453,000 Shareholder's Equity- Coomon stock 407,000 Retained earnings 195,000 Total shareholder's Equity 602,000 Total liabilities and shareholder's equity 1,055,000Related Questions
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