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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

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 $ 175,000
Accounts receivable 300,000
Inventory 250,000
Furniture and fixtures (net) 195,000
Total assets $ 920,000
Liabilities and Shareholders Equity
Accounts payable (for merchandise) $ 300,000
Notes payable 310,000
Interest payable 12,400
Common stock 140,000
Retained earnings 157,600
Total liabilities and shareholders equity $ 920,000

Transactions during 2021 (current year) were as follows:

1. Sales to customers on account $ 960,000
2. Cash collected from customers 940,000
3. Purchase of merchandise on account 650,000
4. Cash payment to suppliers 660,000
5. Cost of merchandise sold 600,000
6. Cash paid for operating expenses 320,000
7. Cash paid for interest on notes 24,800

Additional Information: The notes payable are dated June 30, 2020, and are due on June 30, 2022. Interest at 8% is payable annually on June 30. Depreciation on the furniture and fixtures for 2021 is $36,000. The furniture and fixtures originally cost $460,000. 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.)

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