If explanation can be provided that would be great! The following is the balance sheet of Korver Supply Company at December 31, 2020 (priorKORVER SUPPLY COMPANYBalance SheetAt December 31, 2020Assets$100,000200,000150,000120,000CashAccounts receivableInventoryFurniture and fixtures (net)Total assets$570,000Liabilities and Shareholders' EquityAccounts payable (for merchandise)Notes payableInterest payable$150,000160,0004,000110,000146,000Common stockRetained earningsTotal liabilities and shareholders' equity$570,000Transactions during 2021 (current year) were as follows:Sales to customers on account$810,000790,000500,000510,0001.2.Cash collected from customers3.Purchase of merchandise on accountCash payment to suppliersCost of merchandise sold4.5.450,000 6. Cash paid for operating expensesCash paid for interest on notes170,0008,0007.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 $21,00O. The furniture and fixtures originally cost $310,000.Required:Prepare a classified balance sheet at December 31, 2021, by updating ending balances from 2020 for transactions during 2021 andthe additional information. The cost of furniture and fixtures and their accumulated depreciation are shown separately. (Amounts to bededucted should be indicated by a minus sign.)KORVER SUPPLY COMPANYBalance SheetAt December 31, 2021AssetsCurrent assets:..........Cash

Balance sheet: One of the financial statements that records the assets, liabilities and the owner’s…

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.)