The following is the balance sheet of Korver Supply Company at December 31, 2023 (prior year).
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. Depreciation on the furniture and fixtures for 2024 is $20,000. The furniture and fixtures originally cost $300,000.
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.
