ine Tollowing is the balance sheet or norver Supply Company at December 31, 2020 prior year). 2:39 KORVER SUPPLY COMPANY Balance Sheet At December 31, 2020 Assets Cash Accounts receivable Inventory Purniture 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 $140,000 280,000 230,000 160,000 $810,000 $230,000 240,000 6,000 130,000 204,000 $810,000 Transactions during 2021 (current year) were as follows: 1. 2. 3. Sales to customers on account Cash collected from customers Purchase of merchandise on account Cash payment to suppliers Cost of merchandise sold Cash paid for operating expenses Cash paid for interest on notes $890,000 870,000 580,000 590,000 530,000 250,000 12,000 5. 6. 7. 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 $29,000. The furniture and fixtures originally cost $390,000 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.) deducted should be indicated by a minus sign.) KORVER SUPPLY COMPANY Balance Sheet At December 31, 2021 Assets Current assets: Cash $ Accounts receivable Inventory 158,000 300,000 458,000 Total current assets Property, plant, and equipment: Furniture and fixtures $ 390,000 Accumulated depreciation (259,000) Net property, plant, and equipment Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Interest payable Notes payable 131,000 589,000 $ $ 220,000 6,000 240,000 Total current liabilities Shareholders' equity Common stock Retained earnings 466,000 $ 130,000 Total shareholders' equity Total liabilities and shareholders' equity 130,000 596,000 $