KORVER SUPPLY COMPANY Balance Sheet At December 31, 2020 Assets Cash $125,000 Accounts receivable 340,000 Inventory 290,000 Furniture and fixtures (net) 155,000 Total assets $910,000 Liabilities and Shareholders' Equity Accounts payable (for merchandise) $270,000 Notes payable 280,000 Interest payable 7,000 Common stock 120,000 Retained earnings 233,000 Total liabilities and shareholders' equity Transactions during 2021 (current year) were as follows: 1. Sales to customers on account $1,000,000 2. 3. Cash collected from customers Purchase of merchandise on account 980,000 520,000 4. Cash payment to suppliers 530,000 5. Cost of merchandise sold 470,000 6. Cash paid for operating expenses 360,000 7. Cash paid for interest on notes 14,000 $910,000