apter 3 HW Seved 7 Exercise 3-7 Balance sheet preparation; errors (LO3-2, 3-3] The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors. kipped LOS GATOS CORPORATION Balance Sheet. At December 31, 2018 Assete Canh Accounts receivable Inventories Machinery (net) Franchine (net) 54,000 101,000 62,000 127,000 37,000 $381,000 eBook Total assets Liabilities and Shareholders Equity Hint Accounts payable Allovance for uncollectible accounts Note payable Bonda payable $ 64,000 12,000 69,000 117,000 119,000 Print Shareholders' equity Total liabilities and shareholders' equity $381,000 eferences Additional information: 1. Cash includes a $27,000 restricted amount to be used for repayment of the bonds payable in 2022. 2. The cost of the machinery is $204,000. 3. Accounts receivable includes a $27,000 note receivable from a customer due in 2021. 4. The note payable includes accrued interest of $12,000. Principal and interest are both due on February 1, 2019. 5. The company began operations in 2013. Income less dividends since inception of the company totals $42,000. 6.57,000 shares of no par common stock were issued in 2013. 100,000 shares are authorized. Required: Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.) LOS GATOS CORPORATION Balance Sheet At December 31, 2018