Exercise 3-9 Balance sheet preparation [LO3-2, 3-3]

The following is the balance sheet of Korver Supply Company at December 31, 2017.

KORVER SUPPLY COMPANY
Balance Sheet
At December 31, 2017
Assets
Cash	$	120,000
Accounts receivable		330,000
Inventories		280,000
Furniture and fixtures, net		150,000
Total assets	$	880,000
Liabilities and Shareholders Equity
Accounts payable (for merchandise)	$	260,000
Note payable		270,000
Interest payable		10,800
Common stock		110,000
Retained earnings		229,200
Total liabilities and shareholders' equity	$	880,000

Transactions during 2018 were as follows:

1.	Sales to customers on account	$	990,000
2.	Cash collected from customers		970,000
3.	Purchase of merchandise on account		510,000
4.	Cash payment to suppliers		520,000
5.	Cost of merchandise sold		460,000
6.	Cash paid for operating expenses		350,000
7.	Cash paid for interest on note		21,600

The note payable is dated June 30, 2017 and is due on June 30, 2019. Interest at 8% is payable annually on June 30. Depreciation on the furniture and fixtures for the year is $39,000. The furniture and fixtures originally cost $490,000. Required: Prepare a classified balance sheet at December 31, 2018 (ignore income taxes). (Amounts to be deducted should be indicated by a minus sign.)