Business, 10.02.2020 22:27 aschultz

The following is the balance sheet of Korver Supply Company at December 31, 2020 (prior year).

KORVER SUPPLY COMPANY

Balance Sheet

At December 31, 2020

Assets

Cash$160,000

Accounts receivable 320,000

Inventory 270,000

Furniture and fixtures (net) 180,000

Total assets$930,000

Liabilities and Shareholders’ Equity

Accounts payable (for merchandise)$270,000

Notes payable 280,000

Interest payable 7,000

Common stock 110,000

Retained earnings 263,000

Total liabilities and shareholders’ equity$930,000

Transactions during 2021 (current year) were as follows:

1.Sales to customers on account$930,000

2.Cash collected from customers 910,000

3.Purchase of merchandise on account 620,000

4.Cash payment to suppliers 630,000

5.Cost of merchandise sold 570,000

6.Cash paid for operating expenses 290,000

7.Cash paid for interest on notes 14,000

Additional Information:

The notes payable are dated June 30, 2020, and are due on June 30, 2022. Interest at 5% is payable annually on June 30. Depreciation on the furniture and fixtures for 2021 is $33,000. The furniture and fixtures originally cost $430,000.

Required:
Prepare a classified balance sheet at December 31, 2021, by updating ending balances from 2020 for transactions during 2021 and the additional information. The cost of furniture and fixtures and their accumulated depreciation are shown separately. (Amounts to be deducted should be indicated by a minus sign.)

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The following is the balance sheet of Korver Supply Company at December 31, 2020 (prior year).
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