The following is the balance sheet of Korver Supply Company at December 31, 2023 (prior year)....

 

Transcribed Image Text:

The following is the balance sheet of Korver Supply Company at December 31, 2023 (prior year). Cash Accounts receivable Inventory KORVER SUPPLY COMPANY Balance Sheet At December 31, 2023 Assets 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 $ 850,000 830,000 540,000 550,000 490,000 6. Cash paid for operating expenses 210,000 10,000 5. Cost of inventory sold 7. Cash paid for interest on notes Additional Information: $ 120,000 240,000 190,000 140,000 $ 690,000 $ 190,000 200,000 5,000 150,000 145,000 $ 690,000 B 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 $25,000. The furniture and fixtures originally cost $350,000. 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). Cash Accounts receivable Inventory KORVER SUPPLY COMPANY Balance Sheet At December 31, 2023 Assets 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 $ 850,000 830,000 540,000 550,000 490,000 6. Cash paid for operating expenses 210,000 10,000 5. Cost of inventory sold 7. Cash paid for interest on notes Additional Information: $ 120,000 240,000 190,000 140,000 $ 690,000 $ 190,000 200,000 5,000 150,000 145,000 $ 690,000 B 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 $25,000. The furniture and fixtures originally cost $350,000. 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.

Answer rating: 100% (QA)

Lets update the balance sheet for Korver Supply Company at December 31 2024 incorporating the transa... View the full answer