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 $125,000 340,000 290,000 155,000 Cash Accounts receivable Inventory Furniture and fixtures (net) $910,000 Total assets Liabilities and Shareholders' Equity Accounts payable (for merchandise) Notes payable Interest payable Common stock $270,000 280,000 7,000 120,000 233,000 Retained earnings Total liabilities and shareholders' equity $910,000 Transactions during 2021 (current year) were as follows: 1. Sales to customers on account $1,000,000 2. Cash collected from customers 980,000 Purchase of merchandise on 3. account 520, 000 4. Cash payment to suppliers 5. Cost of merchandise sold Cash paid for operating 530,000 470,000 6. expenses 360,000 Liabilities and Shareholders' Equity Accounts payable (for merchandise) Notes payable Interest payable $270, 000 280, e00 7,000 120, 000 233,e00 Common stock Retained earnings Total liabilities and shareholders' equity $910, e00 Transactions during 2021 (current year) were as follows: 1. Sales to customers on account $1,e00, 000 Cash collected from customers 980, 000 2. Purchase of merchandise on 520, 000 3. account 530, 000 470,000 Cash payment to suppliers Cost of merchandise sold 4. 5. Cash paid for operating 6. expenses 360, 000 Cash paid for interest on 7. notes 14,000 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 $40,000. The furniture and fixtures originally cost $500,000. Required: Prepare a classified balance sheet at December 31, 2021, by updating ending balances from 2020 for transactions during 2021 and the additional information. The cost of furniture and fixtures and their accumulated depreciation are shown separately. (Amounts to be deducted should be indicated by a minus sign.) 31, Assets Current assets: 201,000 Cash Accounts receivable 360,000 Inventory 340,000 Total current assets 901,000 Property, plant, and equipment: 2$ 115,000 X Furniture and fixtures 115,000 Net property, plant, and equipment $ 1,016,000 Total assets Liabilities and Shareholders' Equity Current liabilities: 2$ Accounts payable 260,000 280,000 Notes payable 7,000 Interest payable 547,000 Total current liabilities Shareholders' equity: 2$ 120,000 Common stock Retained earnings 349,000 Total shareholders' equity 469,000 $ 1,016,000 Total liabilities and shareholders' equity