3 The following is the onding balances of accounts at Decembor 31 2018 for the W
ID: 2554029 • Letter: 3
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3 The following is the onding balances of accounts at Decembor 31 2018 for the Weismuller Publishing Company Cash Accounts receivable Inventories Prepaid expenses Machinery and equipment Accumulated depreciation equipment 99,000 4.16 points 302, 000 182,000 354, 000 127,000 Investments Accounts payable Interest payable Deferzed revenue Taxes payable Notes payable Allowance for uncollectible aCCOUnts Common stock Retained earnings 174,000 77, 000 37,000 97,000 47,000 285, 000 33,000 417, 000 185, 000 1,305, 000 Print 1,305,000 Additional Information: 1 Prepaid expenses include $154,000 paid on December 31, 2018, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility 2 Investments Include $47.000 In Treasury bilils purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $127.000 Includes investments in marketable equity securtties that the company Intends to sell in the next year. 3. Deferred revenue represents customer prepayments for magazine subscriptions. Subscriptions are for perlods of one year or less. 4. The notes payable account consists of the following: a a $57,000 note due in stx months b. a $138,000 note due in six years c a $90,000 note due in three annual installments of $30.000 each, with the next installment due August 31. 2019 5. The common stock account represents 417000 shares of no par value common stock issued and outstanding. The corporation has 900.000 shares authorized Required: Prepare a classiftied balanced sheet for the Welsmuller Publishing Company at December 31. 2018. (Amounts to be deducted should be Indicated by a minus sign.)Explanation / Answer
Weismuller Publishing Company Balanesheet as on 31/12/2018 Assets Explanation Current Assets:- Cash and cash equivalent $ 99,000.00 Short term investments $ 1,74,000.00 Accounts Recievable , Net of allowance $ 1,61,000.00 ($194,000-$33,000) Inventories $ 3,02,000.00 Prepaid Expenses $ 77,000.00 (only half of $154,000 is current assets) Total Current Assets $ 8,13,000.00 Property Plant and Equipment Machinery and Equipment $ 2,27,000.00 ($354,000-$127,000) Net Property, Plant and Equipment $ 2,27,000.00 Other Assets Prepaid Expenses $ 1,05,000.00 ($182,000-$77,000) Total Assets $ 11,45,000.00 Liabilities and Shareholders Equity Current Liabilities:- Accounts Payable $ 77,000.00 Interest Payable $ 37,000.00 Deffered Revenue $ 97,000.00 Taxes Payable $ 47,000.00 Notes Payable Current Maturities of long term notes $ 87,000.00 ($57,000 and $30,000 due in next 6 months) Total Current Liabailities $ 3,45,000.00 Long Term Liabilities Notes Payable $ 1,98,000.00 ($285,000-$87,000) Total Liabilities $ 5,43,000.00 Shareholders Equity:- Common Stock $ 4,17,000.00 Retained Earnings $ 1,85,000.00 Total Shareholders Equity $ 6,02,000.00 Total Liabilities and Shareholders Equity $ 11,45,000.00
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