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Exercise 3 - 7 ( Static ) Balance sheet preparation; errors [ LO 3 - 2 , 3 - 3 ] The following balance sheet

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Exercise 3-7(Static) 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 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.
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