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 Accounts receivable Inventory Furniture and fixtures (net) Total assets Liabilities and Shareholders' Equity Accounts payable (for inventory) Notes payable Interest payable Common stock Retained earnings Total liabilities and shareholders' equity Transactions during 2024 (current year) were as follows: 1. Sales to customers on account 2. Cash collected from customers 3. Purchase of inventory on account 4. Cash payment to suppliers 5. Cost of inventory sold 6. Cash paid for operating expenses 7. Cash paid for interest on notes $ 890,000 870,000 580,000 590,000 530,000 250,000 12,000 $ 140,000 280,000 230,000 160,000 $ 810,000 $ 230,000 240,000 6,000 130,000 204,000 $ 810,000 Additional Information: The notes payable are dated June 30, 2023, and are due on June 30, 2025. Interest at 5% is payable annually on June 30. Depreciation on the furniture and fixtures for 2024 is $29,000. The furniture and fixtures originally cost $390,000. 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 accumulated depreciation are shown separately. Note: Amounts to be deducted should be indicated by a minus sign.
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 Accounts receivable Inventory Furniture and fixtures (net) Total assets Liabilities and Shareholders' Equity Accounts payable (for inventory) Notes payable Interest payable Common stock Retained earnings Total liabilities and shareholders' equity Transactions during 2024 (current year) were as follows: 1. Sales to customers on account 2. Cash collected from customers 3. Purchase of inventory on account 4. Cash payment to suppliers 5. Cost of inventory sold 6. Cash paid for operating expenses 7. Cash paid for interest on notes $ 890,000 870,000 580,000 590,000 530,000 250,000 12,000 $ 140,000 280,000 230,000 160,000 $ 810,000 $ 230,000 240,000 6,000 130,000 204,000 $ 810,000 Additional Information: The notes payable are dated June 30, 2023, and are due on June 30, 2025. Interest at 5% is payable annually on June 30. Depreciation on the furniture and fixtures for 2024 is $29,000. The furniture and fixtures originally cost $390,000. 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 accumulated depreciation are shown separately. Note: Amounts to be deducted should be indicated by a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Accounts receivable
Inventory
Furniture and fixtures (net)
Total assets
Liabilities and Shareholders' Equity
Accounts payable (for inventory)
Notes payable
Interest payable
Common stock
Retained earnings
Total liabilities and shareholders' equity
Transactions during 2024 (current year) were as follows:
$ 890,000
870,000
580,000
1. Sales to customers on account
2. Cash collected from customers
3. Purchase of inventory on account
4. Cash payment to suppliers
5. Cost of inventory sold
6. Cash paid for operating expenses
7. Cash paid for interest on notes
590,000
530,000
250,000
12,000
$ 140,000
280,000
230,000
160,000
$ 810,000
$ 230,000
240,000
6,000
130,000
204,000
$ 810,000
Additional Information:
The notes payable are dated June 30, 2023, and are due on June 30, 2025. Interest at 5% is payable annually on June 30.
Depreciation on the furniture and fixtures for 2024 is $29,000. The furniture and fixtures originally cost $390,000.
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 accumulated depreciation are shown separately.
Note: Amounts to be deducted should be indicated by a minus sign.
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