Exercise $3-7($Static$)$ 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 revlewing the statement

you notice several errors.

Additional Information:

Cash Includes a $$20,000$ restricted amount to be used for repayment of the bonds payable in $2028.$

The cost of the machinery is $$190,000.$

Accounts recelvable Includes a $$20,000$ notes recelvable from a customer due in $2027.$

The notes payable balance Includes accrued interest of $$5,000.$ 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 $$35,000.$

$50,000$ 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 approprlate classlfications and account

balances. The cost of machinery and Its accumulated depreclation are shown separately.

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