accounts
Question
The following is the ending balances of accounts at December 31, 2016, for the Weismuller Publishing Company.
| Account Title | Debits | Credits | ||||
| Cash | 99,000 | |||||
| Accounts receivable | 194,000 | |||||
| Inventories | 302,000 | |||||
| Prepaid expenses | 182,000 | |||||
| Machinery and equipment | 354,000 | |||||
| Accumulated depreciation—equipment | 127,000 | |||||
| Investments | 174,000 | |||||
| Accounts payable | 77,000 | |||||
| Interest payable | 37,000 | |||||
| Deferred revenue | 97,000 | |||||
| Taxes payable | 47,000 | |||||
| Notes payable | 285,000 | |||||
| Allowance for uncollectible accounts | 33,000 | |||||
| Common stock | 417,000 | |||||
| Retained earnings | 185,000 | |||||
| Totals | 1,305,000 | 1,305,000 | ||||
| Additional information: | |
| 1. | Prepaid expenses include $154,000 paid on December 31, 2016, 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 bills purchased on November 30, 2016. The bills mature on January 30, 2017. The remaining $127,000 includes investments in marketable 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: |
| a. | a $57,000 note due in six 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, 2017. |
| 5. | The common stock account represents 417,000 shares of no par value common stock issued and outstanding. The corporation has 900,000 shares authorized. |
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