H3 q9

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School

University of Texas, Permian Basin *

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Course

3301

Subject

Accounting

Date

Nov 24, 2024

Type

pdf

Pages

Uploaded by MagistrateRook14313

10/1/23, 6:26 PM Assignment Print View https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmlud… 2/4 9. Award: 7.22 out of 10.00 points The following is the ending balances of accounts at December 31, 2024, for the Weismuller Publishing Company. Account Title Debits Credits Cash $ 81,000 Accounts receivable 176,000 Inventory 293,000 Prepaid expenses 164,000 Equipment 336,000 Accumulated depreciation $ 118,000 Investments 156,000 Accounts payable 68,000 Interest payable 28,000 Deferred revenue 88,000 Income taxes payable 38,000 Notes payable 240,000 Allowance for uncollectible accounts 24,000 Common stock 408,000 Retained earnings 194,000 Totals $ 1,206,000 $ 1,206,000 Additional information: 1. Prepaid expenses include $136,000 paid on December 31, 2024, for two year of rent on the building that houses both the administrative offices and the manufacturing facility. 2. Investments include $38,000 in Treasury bills purchased on November 30, 2024. The bills mature on January 30, 2025. The remaining $118,000 is an investment in equity securities that the company intends to sell in the next year. 3. Deferred revenue represents customer prepayments for subscriptions. Subscriptions are for periods of one year or less. 4. The notes payable account consists of the following: a. a $48,000 note due in six months. b. a $129,000 note due in six years. c. a $63,000 note due in three annual installments of $21,000 each, with the next installment due August 31, 2025. 5. The common stock account represents 408,000 shares of no par value common stock issued and outstanding. The corporation has 816,000 shares authorized. Required: Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign.

10/1/23, 6:26 PM Assignment Print View https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmlud… 3/4 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. WEISMULLER PUBLISHING COMPANY Balance Sheet At December 31, 2024 Assets Current assets: Cash and cash equivalents   Investment in equity securities  156,000      Net accounts receivable 0 Inventory  293,000  Prepaid expenses  96,000  Total current assets 545,000 Property, plant, and equipment: Equipment  $ 336,000  Accumulated depreciation  (118,000)  Net property, plant, and equipment 218,000 Other assets: Prepaid expenses   Total assets $ 763,000 Liabilities and Shareholders' Equity Current liabilities: Accounts payable  $ 68,000  Interest payable  28,000  Deferred revenue  88,000  Income taxes payable  38,000  Notes payable (current)  48,000    Total current liabilities 270,000 Long-term liabilities: Notes payable (long-term)  0  Total liabilities 270,000 Shareholders’ equity: Common stock  $ 408,000  Retained earnings  194,000  Total shareholders’ equity 602,000 Total liabilities and shareholders’ equity $ 872,000

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10/1/23, 6:26 PM Assignment Print View https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmlud… 4/4 References Financial Statements Learning Objective: 03- 02 Identify and describe the various asset classifications. Difficulty: 3 Hard Learning Objective: 03- 03 Identify and describe the various liability and shareholders' equity classifications.