Question

The following is the balance sheet of Kobie Supply Company at December 31, 2020 (prior year).

KObie SUPPLY COMPANY
Balance Sheet
At December 31, 2020
Assets
Cash	$	120,000
Accounts receivable		330,000
Inventory		280,000
Furniture and fixtures (net)		150,000
Total assets	$	880,000
Liabilities and Shareholders’ Equity
Accounts payable (for merchandise)	$	260,000
Notes payable		270,000
Interest payable		10,800
Common stock		110,000
Retained earnings		229,200
Total liabilities and shareholders’ equity	$	880,000

Transactions during 2021 (current year) were as follows:

1.	Sales to customers on account	$	990,000
2.	Cash collected from customers		970,000
3.	Purchase of merchandise on account		510,000
4.	Cash payment to suppliers		520,000
5.	Cost of merchandise sold		460,000
6.	Cash paid for operating expenses		350,000
7.	Cash paid for interest on notes		21,600

Additional Information:

The notes payable are dated June 30, 2020, and are due on June 30, 2022. Interest at 8% is payable annually on June 30. Depreciation on the furniture and fixtures for 2021 is $39,000. The furniture and fixtures originally cost $490,000.

Required:
Prepare a classified balance sheet at December 31, 2021, by updating ending balances from 2020 for transactions during 2021 and the additional information. The cost of furniture and fixtures and their accumulated depreciation are shown separately. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

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Kobie Supply Company Classifical Balance sheet cit December 31, 2021 Assets Current Assets. $198,400 $350,000 $330,000 18878,400 Accounts Receivable Inventory - Total Current Assets Property, plant and equipment: - furniture and fixtures Heyrar previation Net property. Plout and equipment Total Assets Liabilities and Steuttholdeis equity $490,000 ($340,000 $150,000 1$1028400 Consent wahilities & Accounts Payable Notes Payable Anterest Payable Podail Lurrent Wahilities $250,000 $270,000 $ 60,800 $530,800 Stapholder's equity Common stock Refaired Earnings P110,000 +387 600 Tool Stock Roblere equity $497,600 I Total Lahilities & stack holdes equity / |$1028400