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Chapter 03 Homework Saved Help Save 1 The following is the balance sheet of Korver Supply Company at December 31, 2020 (prior year). 10 points KORVER SUPPLY COMPANY Balance Sheet At December 31, 2020 Assets Cash Accounts receivable Inventory Furniture and fixtures (net) Total assets Liabilities and Shareholders' Equity Accounts payable (for merchandise) Notes payable Interest payable Common stock Retained earnings Total liabilities and shareholders' equity $120,000 240,000 190,000 140,000 $690,000 eBook References $190,000 200,000 5,000 150,000 145,000 $690,000 Transactions during 2021(current year) were as follows: 1. Sales to customers on account 2. Cash collected from customers 3. Purchase of merchandise on account 4. Cash payment to suppliers 5. Cost of merchandise sold Cash paid for operating expenses 7. Cash paid for interest on notes $850,000 830,000 540,000 550,000 490,000 210,000 10,000 Additional Information: The notes payable are dated June 30, 2020, and are due on June 30, 2022. Interest ot 5% is payable annually on June 30. Depreciation on the furniture and fixtures for 2021 is $25,000. The furniture and fixtures originally cost $350,000 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.) KORVER SUPPLY COMPANY KORVER SUPPLY COMPANY Balance Sheet At December 31, 2021 Assets Current assets: Total current assets Property, plant, and equipment: ces Net property, plant, and equipment Total assets Liabilities and Shareholders' Equity Current liabilities: Total current liabilities Shareholders' equity: Total shareholders' equity Total liabilities and shareholders' equity Prey 1 of 7