Question:
The following is the balance sheet of Korver Supply Company at December 31, 2012.
Transactions during 2013 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, 2012 and is due on June 30, 2014. Interest at 6% is payable annuallyon
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 21, 2013 (ignore income taxes).
, Answer:
KORVER SUPPLY COMPANY
Balance Sheet
At December 31, 2013
Assets
Current assets:
Cash ....................................................................................... $168,000
Accounts receivable ............................................................... 320,000
Inventories ............................................................................. 250,000
Total current assets .......................................................... 738,000
Property, plant, and equipment:
Furniture and fixtures ............................................................. $300,000
Less: Accumulated depreciation ............................................ (170,000)
Net property, plant, and equipment .................................. 130,000
Total assets ................................................................... $868,000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable ................................................................... $180,000
The following is the balance sheet of Korver Supply Company at December 31, 2012.
Transactions during 2013 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, 2012 and is due on June 30, 2014. Interest at 6% is payable annuallyon
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 21, 2013 (ignore income taxes).
, Answer:
KORVER SUPPLY COMPANY
Balance Sheet
At December 31, 2013
Assets
Current assets:
Cash ....................................................................................... $168,000
Accounts receivable ............................................................... 320,000
Inventories ............................................................................. 250,000
Total current assets .......................................................... 738,000
Property, plant, and equipment:
Furniture and fixtures ............................................................. $300,000
Less: Accumulated depreciation ............................................ (170,000)
Net property, plant, and equipment .................................. 130,000
Total assets ................................................................... $868,000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable ................................................................... $180,000
