The following is the balance sheet of Korver Supply Company at December 31, 2015

 

The note payable is dated June 30, 2015 and is due on June 30, 2017. Interest at 10% is payable annually on June 30. Depreciation on the furniture and fixtures for the year is $23,000. The furniture and fixtures originally cost $330,000

Required:

Prepare a classified balance sheet at December 31, 2016 (ignore income taxes). (Amounts to be deducted should be indicated by a minus sign.)

Transcribed Image Text:

KORVER SUPPLY COMPANY Balance Sheet At December 31, 2015 Assets Cash Accounts receivable Inventories Furniture and fixtures, net Total assets Liabilities and Shareholders' Equity Accounts payable (for merchandise) Note payable Interest payable Common stock Retained earnings Total liabilities and shareholders' equity $630,000 Transactions during 2016 were as follows: 1. Sales to customers on account 2. Cash collected from customers 3. Purchase of merchandise on account 4. Cash payment to suppliers 5. Cost of merchandise sold $110,000 220,000 170,000 130,000 $630,000 6. Cash paid for operating expenses 7. Cash paid for interest on note $170,000 180,000 9,000 130,000 141,000 $830,000 810,000 520,000 530,000 470,000 190,000 18,000 KORVER SUPPLY COMPANY Balance Sheet At December 31, 2015 Assets Cash Accounts receivable Inventories Furniture and fixtures, net Total assets Liabilities and Shareholders' Equity Accounts payable (for merchandise) Note payable Interest payable Common stock Retained earnings Total liabilities and shareholders' equity $630,000 Transactions during 2016 were as follows: 1. Sales to customers on account 2. Cash collected from customers 3. Purchase of merchandise on account 4. Cash payment to suppliers 5. Cost of merchandise sold $110,000 220,000 170,000 130,000 $630,000 6. Cash paid for operating expenses 7. Cash paid for interest on note $170,000 180,000 9,000 130,000 141,000 $830,000 810,000 520,000 530,000 470,000 190,000 18,000

Answer rating: 100% (QA)

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