Please write out your steps.

Exercise 3-9 (Algo) Balance sheet preparation (L03-2, 3-3] 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 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 $170,000 340,000 290,000 190,000 $990,000 $290,000 300,000 10,500 130,000 259,500 $990,000 Transactions during 2021 (current year) were as follows: 1. 2. 3. 4. 5. 6. 7. 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 $950,000 930,000 640,000 650,000 590,000 310,000 21,000 Additional Information: The notes payable are dated June 30, 2020, and are due on June 30, 2022. Interest at 7% is payable annually on June 30. Depreciation on the furniture and fixtures for 2021 is $35.000. The furniture and fixtures originally cost $450.000. KORVER SUPPLY COMPANY Balance Sheet At December 31, 2021 Assets Current assets: Cash $ 119,000 Accounts receivable 360,000 Inventory 340,000 Total current assets 819,000 Property, plant, and equipment: Furniture and fixtures Accumulated depreciation Net property, plant, and equipment 0 Total assets $ 819,000 Liabilities and Shareholders' Equity Current liabilities: Accounts payable Interest payable Notes payable Total current liabilities 0 Shareholders' equity: Common stock Retained earnings 0 Total shareholders' equity Total liabilities and shareholders' equity $ 0