The following is the balance sheet of Korver Supply Company at December 31, 2017. KORVER SUPPLY COMPANY
Question:
The following is the balance sheet of Korver Supply Company at December 31, 2017.
KORVER SUPPLY COMPANY
Balance Sheet
At December 31, 2017
Assets
Cash ..............................................................................$120,000
Accounts receivable ............................................................ 300,000
Inventories ....................................................................... 200,000
Furniture and fixtures, net ..................................................... 150,000
Total assets ......................................................................$770,000
Liabilities and Shareholders' Equity
Accounts payable (for merchandise) .........................................$190,000
Note payable .................................................................... 200,000
Interest payable ................................................................ 6,000
Common stock ................................................................. 100,000
Retained earnings .............................................................. 274,000
Total liabilities and shareholders' equity ................................... $770,000
Transactions during 2018 were as follows:
1. Sales to customers on account ................................... $800,000
2. Cash collected from customers ...................................780,000
3. Purchase of merchandise on account ............................550,000
4. Cash payment to suppliers ........................................560,000
5. Cost of merchandise sold .........................................500,000
6. Cash paid for operating expenses ................................160,000
7. Cash paid for interest on note .................................... 12,000
The note payable is dated June 30, 2017 and is due on June 30, 2019. Interest at 6% is payable annually on June 30. Depreciation on the furniture and fixtures for the year is $20,000. The furniture and fixtures originally cost $300,000.
Required:
Prepare a classified balance sheet at December 31, 2018 (ignore income taxes).
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
See calculations below the balance sheet KORVER SUPPLY COMPANY Balance Sheet At December 31 2018 Ass...View the full answer
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
