Question

The following is the balance sheet of Korver Supply Company at December 31, 2020 (prior year). KORVER SUPPLY COMPANY Balance Sheet At December 31, 2020 Assets Cash Accounts receivable Inventory Furniture and fixtures (net) Total assets Liabilities and Shareholders' Equity Accounts payable (for merchandise) Notes payable Interest payable Common stock Retained earnings Total liabilities and shareholders' equity $170,000 340,000 290,000 190,000 $990,000 $ 290,000 300,000 10,500 130,000 259,500 $990,000 Transactions during 2021 (current year) were as follows: 1. Sales to customers on account 2. Cash collected from customers 3. Purchase of merchandise on account Cash payment to suppliers Cost of merchandise sold Cash paid for operating expenses Cash paid for Interest on notes $950,000 930,000 640,000 650,000 590,000 310,000 21,000 1 of 3 search o Next > a (hp) * Q

Answer 1

Balance Sheet Assets Cash 119000 Inventory 350000 Accounts Receivable 360000 Total Current asset 829000 Property, plant & Equipment Tunnithe & Fixtures 450000 Less! Acumulated Depreciation 295000 5500D Total Assets 984000 Liabilities Accounts Payable 290000 Notes Payable 300000 Interest Payable 10SUO Common Stock 13oooo Retaind Earning 259500 Less: Loss 6 ovo 25 3500 Total Liability & st. Equity 934000 Working :: Accumulated Depreciation Furnitine Cost 450000 Lessi Net Furnitine 190000, (as on Dec.31,2020 Accumulated Dep. 260000 (as on Dec. 31, 2020) Add: Deprecinhon Expi 3502 (For year 2001) Accumuleted Depe 295000 (as in dec. 31, 2021)

Workings:-

Bimal Date: Workings for adjusted new balance Sales Revenue Svudo Cash 470000 6 Surro 1930000 310000 21000 Balo 119000 1950voo Belo Account Receivable 340000 930060 y Souto Inventory 290000 590000 6 40000 Balo 1350000 Operation sapente 31000 Bale (360000 Accounts Payable Gsuvun 300000 64oood 290000] Bal- Interest Payable 2000 10500g 10 500 10500 Bal. Bala 3100ool Interest Expenna 10500 Llore 10500 Balo 2povo Depreciation Expenn 35000 Bala 135000 > workings: Revenue 95 vuo Expense of goods 590000 Operating exp. 310000 Interest Exp. 2/ 000 Depreciation expe. 300 956000 Net Income (cor) (6000)

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