The following is the balance sheet of Korver Supply Company at December 31, 2023 (prior year). KORVER SUPPLY COMPANY Balance Sheet At December 31, 2023 Assets Cash $ 120,000 Accounts receivable 300,000 Inventory 200,000 Furniture and fixtures (net) 150,000 Total assets $ 770,000
The following is the
| KORVER SUPPLY COMPANY | |
|---|---|
| Balance Sheet | |
| At December 31, 2023 | |
| Assets | |
| Cash | $ 120,000 |
| 300,000 | |
| Inventory | 200,000 |
| Furniture and fixtures (net) | 150,000 |
| Total assets | $ 770,000 |
| Liabilities and Shareholders’ Equity | |
| Accounts payable (for inventory) | $ 190,000 |
| Notes payable | 200,000 |
| Interest payable | 6,000 |
| Common stock | 100,000 |
| 274,000 | |
| Total liabilities and shareholders’ equity | $ 770,000 |
Transactions during 2024 (current year) were as follows:
| 1. Sales to customers on account | $ 800,000 |
|---|---|
| 2. Cash collected from customers | 780,000 |
| 3. Purchase of inventory on account | 550,000 |
| 4. Cash payment to suppliers | 560,000 |
| 5. Cost of inventory sold | 500,000 |
| 6. Cash paid for operating expenses | 160,000 |
| 7. Cash paid for interest on notes | 12,000 |
Additional Information:
The notes payable are dated June 30, 2023, and are due on June 30, 2025. Interest at 6% is payable annually on June 30.
Required:
Prepare a classified balance sheet at December 31, 2024, by updating ending balances from 2023 for transactions during 2024 and the additional information. The cost of furniture and fixtures and their
Note: Amounts to be deducted should be indicated by a minus sign.
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