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	$	180,000
Accounts receivable		310,000
Inventories		260,000
Furniture and fixtures, net		200,000
Total assets	$	950,000
Liabilities and Shareholders Equity
Accounts payable (for merchandise)	$	310,000
Note payable		320,000
Interest payable		8,000
Common stock		150,000
Retained earnings		162,000
Total liabilities and shareholders' equity	$	950,000

Transactions during 2018 were as follows:

1.	Sales to customers on account	$	970,000
2.	Cash collected from customers		950,000
3.	Purchase of merchandise on account		660,000
4.	Cash payment to suppliers		670,000
5.	Cost of merchandise sold		610,000
6.	Cash paid for operating expenses		330,000
7.	Cash paid for interest on note		16,000

The note payable is dated June 30, 2017 and is due on June 30, 2019. Interest at 5% is payable annually on June 30. Depreciation on the furniture and fixtures for the year is $37,000. The furniture and fixtures originally cost $470,000. Required: Prepare a classified balance sheet at December 31, 2018 (ignore income taxes). (Amounts to be deducted should be indicated by a minus sign.)

KORVER SUPPLY COMPANY Balance Sheet At December 31, 2018 Assets Current assets Cash Accounts receivable Inventories Total current assets 0 Property, plant, and equipment Furniture and fixtures Accumulated depreciation Net property, plant, and equipment 0 Total assets $0 Liabilities and Shareholders' Equity Current liabilities Accounts payable Interest payable Note payable Total current liabilities 0 Shareholders' equity Common stock Retained earnings Total shareholders' equity 0 Total liabilities and shareholders' equity $0

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