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 $180,000 310,000 260,000 200,000 $ 950,000 $310,000 320,000 8,000 150,000 162,000 $950,000 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 6. Cash paid for operating expenses 7. Cash paid for interest on notes $970,000 950,000 660,000 670,000 610,000 330,000 16,000 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 $37,000. The furniture and fixtures originally cost $470,000. KORVER SUPPLY COMPANY Balance Sheet At December 31, 2021 Assets Current assets: Cash $ Accounts receivable Inventory 114,000 330,000 310,000 754,000 Total current assets Property, plant, and equipment: Furniture and fixtures Accumulated depreciation Net property, plant, and equipment $ 470,000 470,000 1,224,000 Total assets $ Liabilities and Shareholders' Equity Current liabilities: Accounts payable Interest payable Notes payable Total current liabilities Shareholders' equity: Common stock Retained earnings Total shareholders' equity Total liabilities and shareholders' equity