Exercise $3-7($Algo$)$ Balance sheet preparation; errors $[$LO$3-2,3-3]$

The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement

you notice several errors.

Additional Information:

Cash includes a $$26,000$ restricted amount to be used for repayment of the bonds payable in $2028.$

The cost of the machinery is $$202,000.$

Accounts receivable includes a $$26,000$ notes receivable from a customer due in $2027.$

The notes payable balance includes accrued interest of $$11,000.$ Principal and interest are both due on February $1,2025.$

The company began operations in $2019.$ Net income less dividends since inception of the company totals $$41,000.$

$56,000$ shares of no par common stock were issued in $2019.100,000$ shares are authorized.

Required:

Prepare a corrected, classified balance sheet. Use the additional information to help determine appropriate classifications and account

balances. The cost of machinery and its accumulated depreciation are shown separately.

Note: Amounts to be deducted should be indicated by a minus sign.